Reliance in the dock over CAG report on gas fields

New Delhi, Sept 8: In yet another setback to the UPA government, more scam-skeletons seem to emerge from the Comptroller and Auditor General's (CAG) final audit report on Reliance Industries' (RIL) offshore KG-D6 gas fields expenditure. The report was tabled in the Parliament on Thursday.

The report has found that Reliance violated the production sharing contract (PSC) in D6 block and accuses that the company hoarded the D6 exploration acreage in spite of the lack of rigs. The report states that Reliance did not give away as much as 25 per cent of total contract area of D6 block as was mandatory. The report has also indicted the Directorate General of Hydrocarbons (DGH) which is considered the technical arm of the Oil Ministry.

Indicting the DGH further, the report comments how the section should have stopped RIL from continuing with the D6 phase two works.

There was furore earlier, when the CAG report was leaked in June that alleged that the Oil Ministry had bent the rules to favour Mukesh Ambani's Reliance Industries. It was reported then that at the cost of the government's stake in the country's largest gas field, Reliance benefitted massively. CAG had alleged that the RIL had revised the costs of developing the field by more than $6 billion.

OneIndia News