The Comptroller and Auditor General (CAG) is ready to audit Reliance Industries' expenditure in the D6 block of the Krishna-Godavari basin, the government said on Tuesday.

Jitin Prasada, minister of state for petroleum and natural gas, told Parliament on Tuesday the CAG is ready to examine Block KG DWN-983 (known as D6), awarded to RIL.

"The CAG would be in a position to commence the audit in respect of the D6 block from December 14," the minister said in a written reply in the Rajya Sabha.

CAG's audit of the production-sharing contract, which has been argued upon by counsel of the litigating brothers in the Supreme Court, would be for two years ended March 31, 2008, with access to records of previous years linked to transactions of these years.

RIL has expressed its willingness to provide all details and access to the records of the KG-D6 fields to facilitate the audit and has already provided most of the initial papers, Prasada said.

The move comes even as the Ambani brothers Mukesh, who leads RIL, and Anil, who leads RNRL, are locked in an intense litigation over price and supply of gas from the KG basin as agreed under their family MoU.

The minister's reply was in the negative to a question whether the RIL-RNRL dispute was creating problems in the extraction of gas from the Krishna-Godavari basin. "The extraction of gas and supply to consumers of gas is being done in accordance with the policies of the government," he said, adding that the oil ministry has asked the Supreme Court to protect the interests of the government and the country at large.

The minister's reply comes against the backdrop of the litigation in which RNRL argued that in a bid to make huge profits from the KG basin gas, RIL had hiked the capital expenditure from $2.4 billion to $8.8 billion.