Comptroller and Auditor General (CAG) Report on KG Basin

The Office of the Comptroller and Auditor General has pointed out irregularities by Shri Murli Deora and others then in the Oil Ministry for favoring Mukesh Ambani in escalating the cost of Development of KG Basin field by 4 times without relevant support documents.

The CAG report said,

The undue benefit granted to the contractor (RIL) is huge, but cannot be quantified, the newspaper quotes the CAG’s preliminary report as saying. Reliance revised the KG basin development cost almost four-fold between 2004 and 2006 from $2.4 billion to $8.8 billion, “without the company offering a single comprehensive development plan as required under the contract

The CAG Report Further Questions Oil Ministry Officials on overlooking the following matter,

The intent of the operator (Reliance) right at the outset, to submit revisions and changes to the development plan, was evident all through from the submission of an initial development plan (IDP) rather than a comprehensive plan.