CAG tells OilMin not to clear RIL KG D6 capex

The Comptroller and Auditor General of India (CAG) has asked Oil Ministry not to approve any of Reliance Industries' (RIL) investment plans for the flagging KG-D6 gas field unless the company gives it unfettered access to audit its spendings.

In a strongly worded letter, the CAG referred to media reports about the ministry giving nod to RIL's annual capex for KG-D6 that have been pending for past three years, to advise the ministry not to approve any investment except those of "emergent nature".

"It is well within the knowledge of the ministry that any increase in capital expenditure is likely to have significant adverse impact on government's financial interests," CAG wrote to the oil secretary on November 9.

Sources, however, said contrary to reports, the ministry is yet to sign on resolutions approving capital expenditure on the KG-D6 block for 2010-11, 2011-12 and 2012-13 fiscal pending resolution of CAG audit of spending on the block. The ministry wants RIL to give CAG "unfettered access to account books" as a condition.

ALSO READ

GST panel says no to placing mobiles in declared goods list

SC annuls Orissa HC order on iron ore licence to Posco

Karnataka elections over, diesel prices up by 90 paise

Inflation-linked bonds to debut soon