In an over two hours deposition, Reliance Industries Ltd officials, who appeared before the Public Accounts Committee today, responded to the queries raised by the Committee.
PAC is scrutinising the findings of the Comptroller and Auditor General on the KG-D6 gas block. This is the first time RIL officials appeared before the committee since the report was submitted.
Sources said that RIL officials led by Mr P.M.S Prasad, Executive Director of RIL, have made a presentation before the PAC.
The CAG report was critical for the Petroleum Ministry and the Directorate-General of Hydrocarbons because of their activities that protected the contractor RIL.
According to reports, in the meeting held in November last year, PAC members were upset with the response of Petroleum Ministry officials for their lack of preparedness.
The CAG in its Performance Audit Report on Hydrocarbon Production Sharing Contracts report had questioned the Petroleum Ministry and the Directorate-General of Hydrocarbons for allowing RIL to retain the entire area of the giant D6 fields.
The report had found deficiencies in compliance with PSC provisions by the Ministry and the DGH with regard to irregular declaration of the entire contract area of the RIL operated block as discovery area as well as notification of discovery and submission of test reports.
RIL maintained that in KG-D6 fields the company has set a global benchmark for effective, efficient project completion and capital cost competitiveness under the most trying circumstances and was proud of its achievements.
The company had rebutted the comments made by the Government auditor regarding cost-inflation in the KG-D6 gas fields. The company said that the production sharing contract itself incentivises cost-reduction and disincentivises cost-increase.