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CAG Finds Faults in KG-D6 Contract Awarded to RIL: Sources

  • The Comptroller and Auditor General (CAG) has found deficiencies in the KG-D6 contract that was awarded to Reliance Industries in 2001, CNBC-TV18 has learnt.The CAG faulted the Oil Ministry and its technical arm, the Directorate General of Hydrocarbons (DGH), for allowing RIL to retain the entire 7,645 sq km KG-DWN-98/3 (KG-D6) block in the Bay of Bengal after the giant Dhirubhai-1 and 3 gas finds were made in 2001 because-- as per the PSC, RIL should have relinquished 25% of the total area outside the discoveries in June, 2004, and 2005, but the entire block was declared as a discovery area and the company was allowed to retain it.However, CAG has handed over the matter to Public Accounts Committee (PAC) which is scrutinising the findings CAG on the KG-D6 gas block.

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