Petroleum minister Jaipal Reddy today put up a spirited defence in the Comptroller and Auditor General of India (CAG) controversy attempting to clear the air about the leaked draft report on the oil and gas sector. However, for the most part he seemed to reply to the oppositions' attack saying the BJP at this rate will end up losing its credibility.
Hitting back at Left’s Sitaram Yechury and BJP's Murli Manhohar Joshi for criticising the government on the draft CAG report, Reddy's said, "Don't jump the gun with criticism as this can lead to policy paralysis. MM Joshi should issue a notice if he is so concerned by the leak."
On the CAG report itself, Reddy said the draft report is not a final report and the ministry will approach the report with an open mind. He further stated that the ministry and the CAG are on the same side for ascertaining truth and will not hesitate in taking remedial steps. However, at this point, even CAG is not able to quantify alleged loss.
He reiterated the CAG report would only be tabled in parliament after it is finalised.
A recent leaked report by the CAG said the oil ministry and its technical arm, the Directorate General of Hydrocarbons (DGH), allegedly favoured Reliance Industries (RIL) by allowing it to double the development cost of its landmark KG-D6 gas field. However, the company has denied any wrongdoing. RIL shares have dropped 8% in last six trading sessions.
The audit was ordered by the oil ministry in 2007 after allegations by an Anil Ambani Group Company that RIL had artificially inflated costs of development of gas fields in the KG basin. The audit reviews the accounts of four oil and gas blocks including RIL and Cairn India, which is developing oil fields in Rajasthan.
The minister added the draft CAG report would not influence the government's decision on the USD 9.4 billion Cairn-Vedanta deal and USD 7.2 billion RIL-BP deal. "We will try to take the Cairn-Vedanta deal to CCEA this week and the other (RIL-BP) deal is already under the oild ministry’s consideration," he added.
