CAG pulls up ONGC for hiring rig from RIL without bids
The HinduThe Comptroller and Auditor-General has pulled up Oil and Natural Gas Corporation Limited for hiring a rig from Reliance Industries Limited without bids, incurring an avoidable expenditure of Rs. In a report tabled in Parliament on Thursday, the CAG said ONGC hired ‘Actinia’ from the Mukesh Ambani-owned company for six months in 2009, pleading that it was urgently needed to drill three wells. “ONGC hired the rig from RIL for six months, on an assignment basis, in deviation of the standard tendering procedure, citing a requirement to drill at three locations. “Actinia was hired without competitive bids… The hiring of the rig was not justified as it was not necessary for drilling any of the three identified locations,” the report said. 4.64 crore.” Last year, the CAG disclosed that ONGC had hired the deep sea drilling rig, Dhirubhai Deepwater KG-1, from RIL in May 2009 for four years, ending July 2013, without calling for bids, at an operating day rate of $495,000 for the first 180 days and $510,000 from the 181st day.
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