Don't OK Reliance investment plan: CAG
CAG in its previous letter on October 26 had stated that it not contemplating doing a performance audit of the operator (RIL) but shall not be subjected to RIL's conditions of not placing the report in the Parliament and maintaining confidentiality of the information.
"We would like to state that our audit cannot be restricted to only to the accounting records and books of the operator or to the documents and information provided at the discretion of the audited entity.
"Our audit would extend to verification whether the costs depicted are correctly determined and in particular costs incurred for procurement of goods and services are determined through a transparent and competitive process so as to protect Government's revenue interests, especially as such costs are recovered from profit petroleum," CAG had written.
KG-D6 output has fallen to 25.11 million cubic metres per day (mmcmd) after hitting a peak of about 63 mmcmd in August 2010.
While RIL blames geological complexities for the fall, the drop in production adversely affects government's profit take from the block.
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