Reliance Industries has agreed to CAG audit: Oil Ministry

"RIL has agreed to audit by CAG for block KG-DWN-98/3

(KG-D6) for the years 2008-09 to 2011-12 without prejudice to

the rights and contentions of the contractor under the contractual provisions," Minister of State for Petroleum and

Natural Gas Panabaaka Lakshmi said in a written reply to a

question in the House.

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The company had initially objected to audit by CAG for time barred years as per Production Sharing Contract (PSC) and

had not accepted the 'exceptional circumstances' advanced by the ministry, she said.

As per PSC, audit of spending has to be done within two years. "However, RIL has agreed for audit for those years with mutual consent," the minister said.

RIL had sought confirmation from the ministry that the audit report would be submitted by CAG to ministry and all information submitted during the course of the audit would be kept confidential and not disclosed to any third party.

Also, it wanted all such information not to be used for any other purpose other than as allowed under the PSC, she said.

"Ministry of Petroleum has advised RIL that Parliament is

part of Union of India, a signatory to the contract (PSC), and

ot a third party," she said. "RIL has been directed to provide access to all records, documents, accounts of the block to CAG as

... contd.