Report of the Comptroller and Auditor General of India on supply and infrastructure development for natural gas

The Comptroller and Auditor General of India (CAG) has pulled up the petroleum ministry for allowing Reliance Industries (RIL) to charge marketing margins in dollars, while it should have been in rupees. The auditor feels the ministry is responsible for not developing a pipeline network in the country leading to the shortage of gas for fertiliser and power plants. The CAG, in its report ‘supply and infrastructure development for natural gas’ tabled in Parliament on May 5, 2015, said that the marketing margin on supply of domestic natural gas was approved by the government for state-run GAIL India in rupees, whereas RIL, the contractor for the KG-D6 block, was allowed to charge the margin in US dollar terms.

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