Union Petroleum Minister M Veerappa Moily expressed hope that Reliance Industries (RIL) would comply with the audit by Comptroller & Auditor General (CAG) on the firm’s KG D6 spending.
The minister noted that the audit of spending on oil and gas fields is part of the contractual obligation between government and the company.
However, both CAG and RIL are not on the same page over the company’s contractual obligations. Reliance has tussled with CAG over whether the later had the jurisdiction to scrutinize the capital expenditure it claims to have incurred on the D6 field — the biggest in RIL’s block in the KG basin.
The company has argued that its contract with the petroleum ministry does not allow the CAG to evaluate its performance as it is a private company.
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