One of this is the story of flagship project of RIL that is the RIL's Sikka Refinery . This project was initially approved as an Export Oriented Project .Initially capacity of this refinery was 6mtpa it was later expanded to perhaps 9.0 mtpa . Being an EOU , Import duty on capital goods was on concessional rate . However , RIL imported capital goods for refinery which finally when commissioned had capacity of around 22mtpa . Evidently , under declaration of intended capacity by RIL accrued huge gains to RIL by way of reduced import duty on capital goods. Coupled with incentives given to RIL in the form waivers on certain taxes.
On one side RIL built up huge capacity on the other hand ,other approved projects by PSU refineries both on west and east coasts were put in hold or were put on back burners . One wonders, if any analysis have been carried out by anyone on the consequential costs to national exchequer. more
took up the words. Every commercial set-up is subject to appropriate
inspection and audit, in different cases the function of audit could be
performed by any deptt/insttituion. I did not mean to denigrade C&AG or a
particular deptt.l I only wish to emphasise the point that if so many
scams are going on then why these could not be checked in time. Either
these were not subjected to any inspection and audit or were toothless or
the masters concerned did not pay/or not interested to pay any attention,
intentionally or unintentionally, to their recommendations. But it is
certain that something is definitely wrong in our system. It is futile
to be annoyed with AAP - no use fighting the mirror when our own face is
badly mutilated/blackened. more