Anil seeks audit of Reliance gas costs

Anil seeks audit of Reliance gas costs

The group, which is waging a legal battle with Reliance Industries over the gas from the fields at their agreed price of $2.34 per unit, has also sought speedy conclusion of an audit by the Comptroller and Auditor General of India (CAG).

In a letter to Petroleum Secretary RS Pandey, the Anil Ambani group said high capital cost of nearly $9 billion was questioned by numerous officials and government offices, including Cabinet Secretary K M Chandrasekhar.

Others who questioned it included Chairman of Prime Minister Economic Advisory Council, C Rangarajan, the letter said, adding doubts were also raised over the independence of those who approved the capital expenditure.

Capex inflation
“It is therefore astonishing that Reliance Industries has chosen to dismiss the opposition by large sections of the government to the apparent inflation in capex as being motivated by vested interests,” the letter said.

The letter went on to add there was no independent verification of capital costs by any agency other than by the management committee, which includes representatives of the contractor — which is Reliance Industries. “In the interests of transparency and probity, it is requested that the petroleum ministry may kindly ensure the expeditious completion of the CAG audit,” said the letter written by Group President A N Sethuraman.

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