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Corporate Nov 20, 2012

RIL agrees with CAG demand on audit not being time barred

By Firstbiz Staff

After the Comptroller Auditor General (CAG) issued a strongly worded letter to the Oil Ministry, asking it to not approve any further investments in RIL's KG-D6 basin, the company has come around and has softened its stance over the CAG audit, reports CNBC TV18's Nayantara Rai.

In addition, the Oil Ministry has also withdrawn the EGoM note issued earlier which was against hiking KG-D6 gas prices. Government sources have said that the issues with RIL over CAG audit will be resolved in a day of two. RIL has agreed to meet CAG's demand and the audit won't be time barred in FY11 and FY12.

RIL has also agreed to let the CAG audit four years starting FY 09. Reuters

RIL has also agreed to let the CAG audit four years starting FY 09 and the company will get all formal approvals for KG-D6 immediately thereafter.

CAG wanted unfettered access to audit its spendings. RIL was opposed to CAG conducting a performance audit on KG-D6 , whose output has fallen to 25.11 million cubic metres per day. The company however later said that it wasn't opposed to CAG auditing KG-D6 spends.

Meanwhile, Oil Ministry will firm up its view on gas pricing after the Rangarajan committee report which was asked to scrutinise the coal-bed methane or CBM pricing proposals of Reliance industries and Essar Oil.

by Firstbiz Staff

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