ONGC, OIL suppress figures, Assam loses Rs 865.99 crore: CAG
Assam has lost at least Rs 865.99 crore as royalty from ONGC and Oil India Ltd (OIL) in a span of five years, as a result of suppression of production figures by the oil companies, according to a Comptroller and Auditor General (CAG) report.
The report on the Assam government’s revenue receipts for the year ending March 2010, which was placed in the state assembly on Wednesday, has also blamed the failure of the government to enforce payments. Out of the total loss, CAG said that OIL alone accounted for revenue losses to the tune of Rs 634.94 crore, while ONGC accounted for Rs 215.12 crore. The state government was also deprived of Rs 10.48 crore as it failed to claim the sum as “differential royalty” from the Oil Industry Development Board (OIDB).
In the five-year period from April 2004 to March 2009, OIL suppressed its production figures of crude oil and condensate to the tune of 2.27 kilolitres , and the revenue lost amounted to Rs 72.40 crore. OIL also suppressed gas production figures leading to a loss of Rs 49.40 crore.