Reliance Industries to respond to CAG observations after formal communication

NEW DELHI: Reliance Industries today said it will respond to CAG observations on disallowing certain cost of its eastern offshore KG-D6 oil and gas fields after it receives a formal communication on the audit exceptions.

"There are obvious differences between the CAG and RIL on certain basic issues concerning the Production Sharing Contract (PSC)," the company spokesperson said.

CAG in its second audit report on KG-D6 block, which was tabled in Parliament today, recommended disallowing $357.16 million in cost besides pointing to irregular payment of $279.8 million to certain contractors.

"Once we receive a formal communication of audit exceptions by the Government, we will respond to the Government in accordance with the provisions of the Accounting Procedure under the PSC and also exercise such other rights as are available to us in law," it said.