 "RIL gains 2% after CAG grants permission to recover extra cost")
Shares of Reliance Industries are trading higher by 2% to Rs 1,007 on the BSE after the a Comptroller & Auditor General (CAG) panel asked the government to allow the company to recover $160 million of cost incurred on the KG-D6 block and suggested the government to resolve all pending issues of the company.
Based on reports, the panel said the government should act to raise KG-D6 output which fell drastically in the last three years. The panel has also asked the oil ministry to approve the RIL’s D6's budget on time.
The audit panel’s report is on the production sharing pacts between 2008 and 2012. Analysts say this is a big positive for RIL which was fighting a pitched battle with the previous UPA government and the CAG on the extra expenditure incurred on KG-D6 and the fall in production.
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The stock opened at Rs 1,007, touched a high of Rs 1,016 and a low of Rs 984 on the BSE. A total of 332,383 shares have exchanged hands on the BSE so far.