CPI leader Gurudas Dasgupta on Saturday urged the Comptroller and Auditor General (CAG) to conduct an audit of the actual cost of production of natural gas from KG Basin and the loss to the exchequer due to the huge shortfall of production by the Mukesh Ambani-led Reliance Industries limited (RIl). The CPI veteran also asked the Petroleum Secretary to immediately order RIl to comply with the audit requirements and to institute penal actions.
“As you are aware there has been a huge shortfall in production, compared to the Approved Development Plan, over the last three years. I would request CAG to estimate the direct monetary loss to the country in terms of reduction in power and fertiliser production. “No study has been done regarding the actual cost of production (total as well as unit cost) of RIl. Since CAG has access to all the expenditures of RIl, I would request that the actual cost of production be computed. The CAG should also compute the total profit earned by RIl in each of the years. This would be particularly useful in the context of the price revision carried out by the Government,” said Dasgupta in a letter to CAG Shashi Kant Sharma.
Pointing out the one-billion dollar fine imposed on RIl for shortfall in production during former Petroleum Minister Jaipal Reddy’s tenure, the CPI leader asked the CAG that the audit would help the Government to compute the total loss during the past three years. He also demanded the apex auditor to find out the huge profits being earned by RIl from the KG Basin. This would be particularly useful in the context of the price revision carried out by the Government, said Dasgupta.
“The CAG had made the observation in its last report that the charge of gold plating (inflating capital expenditure from $2 billion to $8 billion) would be examined in the current audit report. Since the CAG is the Constitutional watchdog to look into proper expenditure of public funds and accruals to the Government exchequer, both of which are adversely impacted by gold plating, I would request that this allegation is examined carefully and a definite finding be given in the current report,” said the CPI leader.
Dasgupta also asked Petroleum Secretary Vivek Rae to act immediately for taking actions against Reliance for attempts to block CAG from auditing. “I would earnestly request you to give unambiguous directions to RIl to comply with all the audit requisitions in a specified time frame failing which the Government would take penal action against them. I am constrained to note that unless such a clear message is given, RIl will continue with its plan to frustrate audit efforts,” he said in a letter.