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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These payments are relating to the goods and services supplied to KG-D6 project. The most significant part of the report is a word of caution about a subject that is indirectly related to the cost recovery. Also, cost recovery for doing discovery conformity test should be looked into, it said. My Saved Articles Sign in Sign up. Cities were renamed, liberals were shouted down and vegans found their voice. In the famed carpet belt of Bhadohi, UP, the first centre to train as well as employ women in carpet weaving 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.

As per the Production Sharing Contract PSCan operator is allowed to recover all his cost before sharing profit with the government, a provision which CAG says encourages companies to inflate cost to delay profit sharing.

PAC rejects Reliance’s criticism of CAG’s audit process of KG Basin Block

This article is closed for comments. While the Centre has maintained that the issue raised by Dasgupta has been addressed with the new guidelines, advocate Prashant Bhushan, appearing for the NGO, had said several other issues needed to be argued.

It is waiting for a final presentation on the quantification of actual losses to the exchequer due to alleged advantage taken by the contractors.

Get real-time alerts and all the bqsin on your phone with the all-new India Today app. Get instant notifications from Economic Times Allow Not now. Drag according to your convenience. IPA reported as follows: Cost petroleum allows the developer RIL in this case to first recover its costs by selling the gas.


KG basin controversy: SC seeks response from Reliance

Earlier RIL’s senior advocate Harish Salve had said “he is not happy with the new guidelines on gas pricing “. This mega project was completed in a timely manner despite hostile weather conditions for major part of the year, significant supply chain constraints and shortage of manpower.

Most of the statements made in the chapter are a summary of the findings from ’12 andwrapped up thus:. With its newly established partnership with BP, RIL is confident of unlocking the full potential of KG-D6 and other blocks thus bringing greater benefit to the nation.

CAG, however, did point out in the earlier report that RIL had declined to share information that would have enabled the auditor to critically examine the justification of the company for cost escalations.

Relianfe tough ride for the passenger-vehicle segment Multiple disruptions pull down demand; two-wheeler and commercial-vehicle Also, the ministry had ordered RIL to relinquish 6, Take a look at the chart about the cumulative financial details of the KG-D6 block.

A multi-stake partnership to equip adolescents and youth for the job market is taking shape, with Unicef as The repport good ones and the many more that could have been Data check: Why CAG stopped putting defence reports online. RIL is proud of its achievements accomplished in the most challenging circumstances. The CAG report said that RIL did confirm the relinquishment of D31, and pointed out that the cost recovery would now kgg to be reworked and reversed.

Accordingly, the ministry plans to disallow RIL this cost recovery from the D6 block for and This will alert our moderators to take action Name Reason rleiance reporting: Executive director and RIL board member P. While expenditure incurred in and was audited by CAG, remaining expenditure incurred from onwards would be covered in the future audit.

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

The reports of these experts are available on its website, www. This is particularly true when this data is tied-in and calibrated with offset well information as was the case in KG-D6. Comptroller and Auditor General of India. This has to repor seen in the context of tightening of market conditions, sharp increases in commodity prices and the costs of oil and gas equipment and services, adverse weather conditions and tidal currents encountered in the area of development.

Jaipal Reddy saying vag Friday that it would not try to change the terms of its the production-sharing contract PSC with the company.

The CAG was critical of government oversight, particularly on high value bason decisions, and sought an “in-depth review” of 10 contracts, including eight awarded to Aker Group by Reliance on a single-bid basis. Fill in your details: As per the PSC, Reliance should have relinquished 25 per cent of the total area outside the discoveries in June,andbut the entire block was declared as a discovery area and the company was allowed to retain it.

Rafale will not be cancelled, will wait for CAG report: Moreover, RIL did not maintain rfport records for each discovery. NewsApp Relort Read news as it happens Available on. The birth of a youth brand This book excerpt outlines how saucy, edgy Fastrack was conceived out of the Titan stable and evolved into a Will reconsider support to Raj, MP govts if It was also reiterated by the Ashok Chawla Committee on allocation of natural resources.