The scandal borne government has again faced embarrassment from first ever Comptroller and Auditor General (CAG) draft report which claimed that government has favoured Mukesh Ambani's Reliance Industries (RIL) by allowing Reliance Industries to raise expenditure in the D6 field. Though, Oil ministry has denied this, Central Bureau of Investigation (CBI) is scrutinizing the oil ministry's role.
According to CAG draft report, government has favoured RIL to violate terms of the contract with the government to showcase Andhra offshore fields and increase its capital expenditure plan to start production from India's biggest gas discovery in recent years. The report states that RIL was allowed to recover the capital cost incurred before the profits split between the stakeholders, including the government.
'Reliance Industries strongly affirms that as a responsible operator, it has fully complied with the requirements in the Production Sharing Contracts (PSC) at all times in conducting petroleum operations, and refutes any suggestion to the contrary,' the RILs spokesperson said in a statement.
The report also mentions irregularities on Cairns India PSC which in total granted 11,108 sq km area in RJ-ON-90/1 block’ in Rajasthan. However, oil ministry agreed to company’s request for granting additional 852.2 sq km in August 2004 and 856 sq km in March 2005. Although PSC cites that the government can extend the contract area to include a hydrocarbon reservoir that extends beyond the block boundaries.
“In our view, the contract area under the PSC is sacrosanct. It can by no means be argued that already discovered reservoirs extend over the entire extended area of 852.20 sq km (and) 856 sq km,” report states.
Oil ministry is likely to reply to CAG's draft report in two weeks time. However, ministry may take some more time as it has now entirely new set of ministers. This may lead to delay in CAG final report and the same may not be presented in the monsoon session of parliament next month.
MoneyWorks4Me rating and ranking of funds for SIP is available to subscribers only. Moneyworks4Me is not a rating and ranking agency, however it is required that users have a way of selecting funds and building a Portfolio. The method used by it are described below to enable users to understand the logic behind the rating and ranking Subscriber will find more details on this in the various content made available from time to time. In case you need more please write to besafe@moneyworks4Me.com
MoneyWorks4Me rates and ranks mutual funds based on the following data-driven system:
Funds ranking in screeners: Performance Consistency and Quality are two parameters used for ranking funds for SIP. The ranking as follows GG, GO, GR, OG, OO, OR, RG, RO and RR.
With the same color-coded funds, the one with the higher Average 3-year rolling returns (over 5 to 10 years), the number that appears in the Performance tag, ranks higher.
Here is the summary:
The third tag Upside Potential is not relevant for SIP. It is relevant for lumpsum investments in Mutual Funds.
Buy quality Stocks when they are available at reasonable prices and supported by an upward price trend and Sell when they are Overvalued using the Decizen Rating System. Covers 3500+ stocks
Download APP
