The Comptroller & Auditor General of India (CAG) Performance Audit Report on the Hydrocarbons Production Sharing Contracts (MoPNG) has. PAC rejects Reliance’s criticism of CAG’s audit process of KG Basin Block reports on the production sharing contracts — the RIL-operated KG. New Delhi: Reliance Industries has sought “suitable opportunity” to respond to a CAG report that indicts it on receiving undue favours from the oil ministry, saying .

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The petroleum fiscal system currently in force in India does not create any incentive for the contractor to indulge in overspending.

A new CAG report puts a number to how much Reliance Industries owes the exchequer: $1.6 billion

Executive director and RIL board member P. The numbers have been mentioned in a chapter of the CAG report released on August 2. Basiin Common Cause has supported Dasgupta’s arguments and referred to controversial intercepted telephonic conversations between former corporate lobbyist Niira Radia with others to support the allegation of collusion.

The reports of these experts are available on its website, www. On the contrary, it provides “substantial incentive to increase capital expenditure or ‘front-end’ capital expenditure” so that government take from the blocks is lower. He had said that the draft CAG report itself suggested that RIL “hugely over-estimated” the reserves of the KG gas block and other irregularities are cited.

Drag according to your convenience. Key vendors are all reputed companies and global leaders in oil services, onshore engineering and construction, sub-sea construction and pipeline installation. A multi-stake partnership to equip adolescents and youth for the job market is taking shape, with Unicef as RIL had submitted that the gas output from KG basin has fallen to 8 mscmd against expected 80 mscmd due to “technical reason”.

Cracking the new CODE of marketing In the new year, marketers will have to focus on four new essentials Flashback Though the norms have been relaxed over a period of time, buyers continue A tough ride for the passenger-vehicle segment Multiple disruptions pull down demand; two-wheeler and commercial-vehicle With its newly established partnership with BP, RIL is repoft of unlocking the full potential of KG-D6 and other blocks thus bringing greater benefit to the nation.


Will reconsider support to Raj, MP govts if Please Email the Editor. Choose your reason deliance and click on the Report button.

Commencing production was a complex task, requiring engineering ingenuity to develop critical infrastructure and the use of cutting-edge technology. It rated the KG-D6 FDP as being very comprehensive when compared with industry standards; besides being more detailed than other similar Asian projects. An RIL official said the letter was sent in September. RIL has diligently and aggressively pursued highly successful exploration, appraisal and development operations and has done so in accordance with GIPIP.

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The few good ones and the many more that could have been Data check: The fact that an energy major like BP has entered into a strategic partnership with Reliance in this block, further vindicates our position. To see your saved stories, click on link hightlighted in bold. It is waiting for a final presentation on the quantification of actual losses to the exchequer due to alleged advantage taken by the contractors.

Onn, no negative replies have been received to any of the questions in the confirmation. The CAG audit has remarked that if the independent report on the verification of allegations made by the Oil and Natural Gas Corporation is accepted, then the financials of the game would change adversely against RIL.

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Full coverage of the RIL-KG D6 basin controversy

This book excerpt outlines how saucy, edgy Fastrack was conceived out of the Titan stable and evolved into a In a blow to Mukesh Ambani-led Reliance Industries Ltd RILthe Union government has declined to join the arbitration proposed by the company to resolve the dispute over the recovery of cost for developing the D6 hydrocarbon field in the Krishna-Godavari KG basin.


Thu, Nov 01 Subir Ghosh is a Bengaluru-based journalist and researcher. Moreover, RIL did not maintain separate records for each discovery. It compared the FDPs on five essential criteria such as cost overrun, cost competitiveness, slippage in execution, schedule competitiveness and operability. These discoveries were appraised sufficiently and in a manner consistent with good international petroleum industry practices GIPIP. The related parties transaction were primarily for purchase of fuel and chemicals by following a competitive bidding process and was indeed supplied at a price lower than what was procured through Indian Public Sector Companies.

Cost petroleum allows the developer RIL in this case to first recover its costs by selling the gas. This flaw was pointed out in the explosive CAG report of ‘ Extensive drilling, seismic and geological activity undertaken in the KG-D6 make the block one of the most extensively appraised frontier, ultra-deep water blocks in the world.

CAG report on KG Basin indicts Reliance – Business News

A source has said that Reliance was given enoughopportunities to present its views at various stages during the audit. Their bidding was market competitive and prices charged were comparable to the then prevalent prices in the market.

Are you a Business Owner? Accordingly, the ministry plans to disallow RIL this cost recovery from the D6 block for and Never miss a great basij story! The CAG report said that RIL did confirm the relinquishment of D31, and pointed out that the cost recovery would now need to be reworked and reversed.

When measured against these criteria, it rated the KG-D6 as what it deems as a successful project.