CAG asks OilMin not to approve RIL investment plan for KG D6

The CAG has asked Oil Ministry not to approve any of Reliance Industries' investment plans for the flagging KG-D6 gas field unless the company gives it unfettered access to audit its spendings.

In a strongly worded letter, Comptroller and Auditor General of India (CAG) referred to media reports about the ministry giving nod to RIL's annual capex for KG-D6 that have been pending for past three years, to advise the ministry not to approve any investment except those of "emergent nature".

"It is well within the knowledge of the Ministry that any increase in capital expenditure is likely to have significant adverse impact on government's financial interests," CAG wrote to Oil Secretary on November 9.

Sources, however, said contrary to reports, the ministry is yet to sign on resolutions approving capital expenditure on the KG-D6 block for 2010-11, 2011-12 and 2012-13 fiscal pending resolution of CAG audit of spending on the block.

The Ministry wants RIL to give CAG "unfettered access to account books" and pending that it has not approved the firm's investment proposals including annual budget for three years.

"We would like to strongly recommend that pending complete submission of all supporting records by the operator relating to expenditure for previous years upto 2011-12 and comprehensive and detailed scrutiny thereof to verify that the government's financial interests have not been adversely affected in any, the Ministry may examine all relevant issues closely and carefully before considering the desirability of any future approvals of capital expenditure through the annual work programme and budget, development plans or otherwise, except those of an emergent nature," CAG wrote.

EDITORIAL OF THE DAY

  • The government must only sell PSU stocks that are in demand

    The government’s move to change the methodology of selecting merchant bankers for divesting stake in various public sector undertakings would save d

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

BK Chaturvedi

Delhi and its democratic core

In the last one month, questions have been raised about ...

Kuruvilla Pandikattu SJ

Moral basis for collective living

Laudato si (Praise Be to You”) the second circular letter ...

Dharmendra Khandal

Have you spotted those wasps, yet?

Wasps are insects that ride on the monsoon winds. I ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture