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June 6, 2012. The CBI has sought Attorney General (AG)'s opinion on registering a case in the alleged artificial cost inflation by Reliance Industries for the development of eastern offshore KG-D6 fields. The CBI has completed its inquiry into the alleged conspiracy in allowing RIL to raise cost of developing the KG-D6 field from USD 2.39 billion proposed in 2004 to USD 8.8 billion in 2006. V K Sibal was the head of Directorate General of Hydrocarbons (DGH) which gave RIL approvals for raising the cost on the plea that gas reserves as well as cost of services have gone up. Operators like RIL are allowed to recover all their cost before sharing profits with the government. Higher capital cost directly impacts the government's revenue.
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