It has now come to light that late chief minister YSR asked the Prime Minister Dr Manmohan Singh to order a detailed probe into the Reliance Industries jacking up the capital cost of the Krishna Godavari basin D6 well in Andhra Pradesh from $2.8 billion to $8.8 billion.
The contents, mentioned in the YSR letter addressed to the PM on June 29, 2007 allege that the Reliance Industries Ltd owned by Mr Mukesh Ambani had jacked up the capital cost to mislead the Centre and AP and requested Manmohan Singh to take into the government’s hands the crucial factors of fixing the price and the end user.
Mr Somayajulu, who once worked as an adviser to the Government, told a media conference that YSR had objected to allowing Reliance to fix the price and the end user. He spoke to media persons in the wake of the Comptroller and Auditor General (CAG) indicting the Reliance in its final report tabled in the Parliament on Thursday.
CAG indicts Reliance Industries
In what could possibly turn out as yet another mega scam, the Comptroller and Auditor General (CAG) has accused Reliance Industries of violating terms of the contract for its showcase Andhra offshore acreage.
The CAG report has also expressed doubt over the costs at which the oil company contracted goods and services for bringing the largest gas discovery into production.
The CAG in is final report said that according to the government contract with the Reliance, the gas company was to relinquish 25% of the exploration block after making the gas discovery. But the Directorate General of Hydrocarbons, after initially objecting to Reliance demand to keep the entire area, made a U-turn and allowed the company to keep the entire block with it in violation of the agreement.
