The standoff between Comptroller and Auditor General (CAG) of India and Reliance Industries Ltd RIL) seems to be getting worse. Meanwhile, the gas energy landscape of the country continues to deteriorate. The dispute stems from the scope of the audit of the controversial KG-D6 gas fields operated by RIL. While RIL has agreed for a financial audit of its accounts by CAG, the latter wants to dig deeper. CAG wants to examine veracity of RIL's expenditures. RIL is not agreeing to the same since it believes it to be beyond the scope of the audit as prescribed in the production sharing contract (PSC). While the two are locking horns, the approvals for further investment in KG D6 block have been put on hold. It's been over two years and the issue lies unresolved. With domestic gas supplies already falling, this development has severe implications for the country's energy security.

The matter obviously needs to be settled soon. But who should prevail? RIL's stand in the issue makes us wonder if something is fishy about one of the biggest corporate of the country. If the audit is conducted on RIL's terms, it will be a huge set back to transparency. And that too in a matter that deals with the natural resources and energy security of the country. We believe that CAG should be given a free hand in audit in the national interest. The process really needs to be sped up so that the gas sector does not suffer from such delays. Also, the Government and oil ministry should learn from the entire episode and frame better PSCs that ensure growth and development without sacrificing transparency.