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CAG to conduct comprehensive audit

CAG to conduct comprehensive audit

The Comptroller and Auditor General (CAG) will conduct two separate “performance audits” in the oil and gas sector.

The first one pertains to the government’s role in the supply and pricing of natural gas between 2007-08 to 2011-12, which will cover the pricing of RIL’s KG-D6 gas, its allocation to various consumers and supply cuts due to decline in gas production.

The other is related to pricing mechanism of major petroleum products, including petrol and diesel.

Performance of petroleum, power and fertiliser ministries, which are actively involved in gas pricing and supply issues, would be examined through the audit.

CAG’s performance audit is considered the most comprehensive review which includes the auditor’s independent assessment of economic, efficient and effective operation of an organisation, programme or scheme. Other audits undertaken by CAG are ‘financial’ and ‘compliance’ audits.

In the first meeting of performance audit for supply and pricing of natural gas, state-owned Gail India suggested to expand the audit scope to private companies involved in supply of gas.

The first meeting, which is also called entry conference, was attended by representatives of CAG, downstream regulator, petroleum, power and fertiliser ministries and executives of Gail, ONGC and Oil India.

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