Reliance Industries Recovered $1.6 Billion In Excess Costs, Says CAG

The Logical Indian

August 5th, 2016 / 6:40 PM

Source: zeenews | Image Courtesy: twimglivemint

CAG has tabled in the parliament the audit report of the gas recovered from the KG D6 gas block. The report has thrown light on many discrepancies and irregularities in the cost and recovery of the gas from the KG basin.


Here are some of the findings from the report:

1. Migration of Gas: Gas has been migrated from the blocks owned by the state-owned firm (ONGC) to the private company operated fields (Reliance). The government has reportedly appointed a one-member committee under Justice AP Shah to advice on the future course of action.


2. Cost recovery: As per the agreement, profit sharing with government starts after the private players have recovered their costs. The CAG has noted that this clause has enabled private players to inflate and delay operational cost. The report noted “The total financial impact of excess cost recovery during 2012-14 on account of the earlier identified audit findings was USD 1.547 billion (Rs 9,307.22 crore). For the period 2012-14, additional issues of excess cost recovery claimed by the operator (RIL) were noticed, financial effect of which was USD 46.35 million,”

Among the other things the CAG has rapped the Oil Ministry and its technical arm DGH for not exercising enough control and vigil over KG-D6 block, leading to excess cost recovery.


Contributors

Edited by :

Share your thoughts..

Related Stories

NGT Pollution Delhi

NGT Asks CPCB To Look Into 51,837 Industries In Delhi

With 60,000 Deaths Last Year, SC Asks Govt- What’s More Important, Saving Lives Or Industries

Nawaz Sharif Didn’t Launder $4.9 Billion To India, Says World Bank

Report Says You Can Access Billion Aadhaar Details With Just Rs 500, UIDAI Denies Breach

Ulhas river

SC Orders Civic Bodies, Industries To Pay Rs 96 Crore For Polluting Ulhas River, Mumbai

Bellandur Lake

Bengaluru: In A Welcome Move, NGT Orders Immediate Shut Down Of Industries Around Bellandur Lake

Latest on The Logical Indian

Exclusive

#SevaSeShadi: This Couple Invited 150 Underprivileged Kids To Their Wedding

Awareness

UP District To Start Cow Census To Prevent Slaughter; Will Register NSA Against Culprits

Awareness

Tickets To Visit Taj Mahal Hiked Five Times To Limit Visitors

News

From Garbage Dump To “India’s Largest Floating Island,” This Bengaluru Lake Is In Limca Book of Records

News

Bengaluru: BR Ambedkar’s Bust Mysteriously Appears Overnight In KR Market, Mayor Clueless

News

Since 2014 PM Modi’s Foreign Trips Have Cost Taxpayers Over Rs 2,000 Cr

x

Stories that deserve attention, delivered to your inbox!

Handpicked, newsworthy stories which deserve the attention of a rational generation.