CAG wants $357.16 m of RIL's KG-D6 cost disallowed

The Comptroller and Auditor General (CAG) on Friday sought disallowance of $357.16 million expenditure that Reliance Industries (RIL) incurred on drilling of wells and payments to contractors in KG-D6, while it pulled up the Oil Ministry for delays in approvals and inconsistent parameters.

In its second audit of RIL’s eastern offshore KG-D6 block, the CAG recommended disallowing RIL from recovering $279.8 million in cost of three wells, as well as, a part of expenditure the firm had incurred in area which was improperly declared the discovery area. CAG, in its report tabled in Parliament, found irregular payment of $427.48 million to contractors, of which it sought disallowance of at least $77.36 million cost.

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