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Minister asks secretary to address RIL issue

Minister asks secretary to address RIL issue

Union Petroleum Minister Veerapa Moily asked the newly appointed oil secretary Vivek Rae to take steps to resolve the difference of opinion between Reliance Industries (RIL) and the Comptroller and Auditor General ((CAG).

Following the direction, Rae is reportedly making efforts to resolve some differences between the company and the auditor.

CAG wants RIL to allow it to carry out audit of the operations of the company in KG D6 basin as per the CAG Duties, Power and Conditions of Service (DPC) Act.

RIL expressed the apprehension that in case the audit is conducted under DPC Act, it may possibly extend beyond the scope of PSC, which is not acceptable to them.

It is learnt that RIL has no object to the CAG scrutinising the financial records of the KG-D6 block, which is as per the contract between the government and the company. But, it has objections to the CAG’s direct and indirect attempts to conduct comprehensive audit of the block.

Reliance told the oil ministry last month that it did not furnish certain documents to the audit team because these documents were not relevant for financial audit as envisaged in the accounting procedure of KG-D6 production sharing contract.

Some days ago, Moily directed Rae to take opinion of the solicitor general on the issue.

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