CAG REPORT ON RELIANCE KG BASIN PDF
The Comptroller & Auditor General of India (CAG) Performance Audit Report on the Hydrocarbons Production Sharing Contracts (MoPNG) has. PAC rejects Reliance’s criticism of CAG’s audit process of KG Basin Block reports on the production sharing contracts — the RIL-operated KG. New Delhi: Reliance Industries has sought “suitable opportunity” to respond to a CAG report that indicts it on receiving undue favours from the oil ministry, saying .
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A new CAG report puts a number to how much Reliance Industries owes the exchequer: $1.6 billion
The numbers have been mentioned in a chapter of the CAG report released on August 2. Sep 10 Foul language Slanderous Inciting hatred against a certain community Others. A source has said that Reliance was given enoughopportunities to present its views at various stages during the audit. Based on this database, IPA has developed a set of statistical models that evaluate project outcome in key areas of cost, schedule and operability.
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As per the Production Sharing Contract PSCan operator is allowed to recover all his cost before sharing profit with the government, a provision which CAG says encourages companies to inflate cost to delay profit sharing. Choose your reason below and click on the Report button. Do You Like This Story? The CAG report said that RIL did confirm the relinquishment of D31, and pointed out that the cost recovery would now need to be reworked and reversed.
Most of the statements made in the chapter are a summary of the findings from ’12 andwrapped up thus:. Drag according to your convenience. This is because the profit petroleum is calculated not by deducting the total expenditure from the total revenue made by selling gas, but by deducting the cost petroleum.
The higher the cost recovery by the company, the lower the profit that goes to the exchequer. This will reduce the incentive for skewed volume and timing of capital expenditure resulting in very low Government of India share of profit petroleum. Your Reason has been Reported to the admin. Will be displayed Will not be displayed Will be displayed. Read more on RIL.
The Rangarajan formula on reliace pricing was approved by the previous UPA government. Furthermore, no negative replies have been received to any of the questions in the confirmation. What a year has been!
CAG red-flags $ billion excess cost recovery by RIL – The Economic Times
When measured against these criteria, it rated the KG-D6 as what it deems as a successful project. Moreover, RIL did not maintain separate records for each discovery. Accordingly, the ministry plans to disallow RIL this cost recovery from the D6 block for and If the cost petroleum is high, the profit petroleum is low.
The company has so far not responded to requests from this reporter for comment about the findings of the CAG.
The few good ones and the many more that could have been Data check: All these are counted as part of the D6 field. RIL commenced gas production from KG-D6 in six and a half years from discovery, in comparison to the global average of years for similar deep-water production facilities. There are two elements here: Take a look at the chart about the cumulative financial details of the KG-D6 block. Commencing production was a complex task, requiring engineering ingenuity to develop critical infrastructure and the use of cutting-edge technology.
They found that RILs submission thorough and provided clear documentation of the requirements and the reasons for the revision including updated sub-surface information. Fill in your details: SC seeks response from Reliance. In Maharashtra, it appears the rural jobs scheme is being implemented on paper alone.
Extensive drilling, seismic and geological activity undertaken in the KG-D6 make the block one of the most extensively appraised frontier, ultra-deep water blocks in the world. As part of the cat process, RIL had provided its responses to the CAG and the views of technical experts on the subject. Executive director and RIL board member P.
This has to be seen in the context of tightening of market conditions, sharp increases in commodity prices and the costs of oil and gas equipment and services, adverse weather conditions and tidal currents encountered in the area of development.
This is particularly true when this data is tied-in and calibrated with offset well information as was the case in KG-D6. Tell us what you didn’t like in the comments. While the Centre has maintained that the issue kv by Dasgupta has been addressed with the new guidelines, advocate Prashant Bhushan, appearing for the NGO, had said several other issues needed to be argued.
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