Reliance says basic differences on audit report

Reacting to the report tabled by India's official auditor Friday, Reliance Industries said there were some basic differences over it, and that it will furnish a reply if and when the government seeks this.

The reaction was in reference to the report on India's hydrocarbons sector where the Comptroller and Auditor General of India (CAG) had faulted the government for delays in fixing prices, while also calling for disallowance of certain costs claimed by contractors like Reliance Industries (RIL).

The report was tabled in parliament Friday.

"There are obvious differences between the CAG and RIL on certain basic issues concerning the Production," a statement from Reliance said.

"Once we receive a formal communication of audit exceptions by the government, we will respond to the government in accordance with the provisions of the accounting procedure under the PSC and also exercise such other rights as are available to us in law."

The PSC is the contract between Reliance Industries and the government that covers, among other things, how the cost of exploration will be shared and the price to be paid for the hydrocarbons extracted.