In the wake of the performance audit report of the Comptroller and Auditor-General on Hydrocarbon Production Sharing Contracts for on-shore and off-shore blocks, the Communist Party of India (Marxist) on Saturday said the nexus between policy-makers and big businesses was exposed and demanded that action be taken against Reliance Industries Limited.
95 pc of KG Basin area should be taken back: CPI(M) - The Hindu
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Besides taking back 95 per cent of exploration area for oil and gas being retained “illegally” by the company in gross violation of the production sharing contract, penalties should be imposed on the company for “gold-plating” contracts and cornering almost the entire share of the profit from petroleum, the party said in a statement. It also wanted a review of the New Exploration Licensing Policy. The party said the audit of KG-6 deepwater block operated by the Reliance Industries revealed malpractices — including inflation of capital costs to claim higher share of profit for petroleum; awarding procurement contracts to others without competitive bidding; retaining the entire 7,654 sq.km. exploration area — causing substantial losses to the government.95 pc of KG Basin area should be taken back: CPI(M) - The Hindu
