CAG pulls up ONGC for hiring rig from RIL without bids

State-owned Oil and Natural Gas Corporation has been pulled up by the Comptroller and Auditor General for hiring a drilling rig from Mukesh Ambani owned Reliance Industries Limited without bidding leading to an avoidable expenditure of Rs. In a report tabled in Parliament on Thursday, the CAG has said ONGC hired `Actinia’ rig from RIL for six months in 2009 for Rs. Earlier also, CAG had in September 2012 criticised ONGC for hiring a deep sea drilling rig Dhirubhai Deepwater KG-1 in May 2009 without calling for competitive bids and on untenable grounds. In its report tabled on Thursday, CAG said: "ONGC hired the rig from RIL for six months on assignment basis in deviation of standard tendering procedure citing requirement to drill at three locations. Last year CAG stated that ONGC had in May 2009 hired DDKG-1 from RIL for four years ending July 2013 without calling for competitive bids at an operating day rate of $495,000 for first 180 days and at $510,000 from 181st day onwards.