New Delhi: Stoking yet another controversy, Bharatiya Janata Party leader Varun Gandhi has raised doubt over his party and the Centre’s silence on the CAG report on KG Basin.

The Pilibhit Parliamentarian tweeted: “The Government and BJP both silent, wonder why?”

He went on to say: “CAG indicts Reliance and it is clear violation of the Government contract.”

National auditor CAG on Thursday castigated the Oil Ministry for allowing Reliance Industries to retain its entire eastern offshore KG-D6 block in contravention of the Production Sharing Contract, but did not comment on more than tripling of the field development cost.

The CAG, in its much-awaited report tabled in Parliament on Thursday, did not say if the capital expenditure for KG-D6 being raised from USD 2.4 billion proposed in 2004 to USD 8.8 billion in 2006 was unjustified or inflated.

It faulted the Oil Ministry and its technical arm, the Directorate General of Hydrocarbons (DGH), for allowing Reliance to retain the entire 7,645 sq km KG-DWN-98/3 (KG-D6) block in the Bay of Bengal after the giant Dhirubhai-1 and 3 gas finds were made in 2001.

As per the PSC, Reliance should have relinquished 25 per cent of the total area outside the discoveries in June, 2004, and 2005, but the entire block was declared as a discovery area and the company was allowed to retain it.

"We recommend that the Ministry of Petroleum and Natural Gas should review the determination of the entire contract area as 'discovery area' strictly in terms of the PSC provisions," the CAG said, asking for delineation of the discovery area and relinquishment of the rest.

JPN