RIL to oil min: Allow capex to avoid closure of KG-D6

The oil ministry and the Directorate General of Hydrocarbons has not yet agreed toReliance Industries' (RILs')  USD 1.6 billion budgetary plan for FY12-13. This has An upset RIL which has communicated to the ministry that the 'do nothing case' may lead to closure of the KG-D6 block closure in 2015-16, say CNBC-TV18 sources.

The oil ministry and RIL had a meeting on August 7 to discuss issues pertaining to the KG-D6 block but still the energy giant is still awaiting a nod for KG-D6 budgetary approval.
 RIL fears that the already developed infra developed at KG-D6 may be wasted without government interventions. However, sources inform that the ministry may approve KG-D6 budget plans, but only post the Comptroller and Auditor General's go-ahead.
 RIL has however opposed to CAG doing a 'performance' audit wherein efficacies of process or technology used in the complex deep-sea operations are called in for questioning by a non-technical authority.
Meanwhile, RIL has said it was open to financial audit of its spending on the field, which has seen production drop by over 55 per cent to 27.5 million cubic metres per day, instead of rising to planned 80 mmcmd.