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CAG hauls up ONGC for hiring a second rig from Reliance

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Star Live 24, Star Live 24
Thursday, August 08, 2013
Published On: 17:28:29 PM

The Comptroller and Auditor General of India (CAG) has hauled up state-owned explorer ONGC for hiring a drilling rig from Reliance Industries without bidding and for no pressing reason.

CAG, in a report tabled in Parliament on Thursday, said Oil and Natural Gas Corp (ONGC) hired rig ‘Actinia’ from RIL for six months in 2009 for Rs 146.71 crore saying it needed to urgently drill three wells but its actual usage indicated the hiring was 'not necessary'.

This is the second time that CAG has pulled up ONGC for hiring a rig from RIL. It had in a September 2012 report criticised ONGC for hiring deep sea drilling rig Dhirubhai Deepwater KG-1 (DDKG-1) in May 2009 without calling for competitive bids and on untenable grounds.

Both the hirings happened when R S Sharma was the Chairman and Managing Director of the state-owned firm.

CAG in the latest report said, 'ONGC hired rig ‘Actinia’ from RIL for six months on assignment basis in deviation of standard tendering procedure citing requirement to drill at three locations.'

'Actual deployment of the rig indicated that hiring of the rig was not necessary for drilling at any of the three identified locations. The entire expenditure (of) Rs 146.71 crore on hiring of the rig from February 2009 to July 2009 was, thus, avoidable,' it said.

Courtesy : The Hindu

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