Parliament panel pulls up Oil Min for vague replies on encashing bank guarantees of Reliance Gas

The Parliament’s Public Accounts Committee (PAC) has pulled up the oil ministry for vague replies on encashing bank guarantees of Reliance Gas during the Congress-led UPA rule after authorisation for laying four pipelines was cancelled over failure to adhere to timelines. The PAC, headed by Congress leader Adhir Ranjan Chowdhury, in a report tabled in Parliament on Monday said the petroleum ministry, despite repeated reminders, did not give reasons for not forfeiting bank guarantees given as assurance for completing the project.

Oil regulator PNGRB had in May 2012 asked the government to cancel licence granted to Reliance Gas Transportation Infrastructure (RGTIL) to lay four gas pipelines, saying the company has been dragging its feet on implementation of the 2,175 km pipelines.