Reliance Industries Ltd (RIL) has reportedly softened its stance over audit of its KG-D6 oil & gas block by the Comptroller Auditor General (CAG).

RIL has agreed to allow the national auditor to audit accounts of KG-D6 block for four years starting financial year of 2009.

Until now, RIL had been declining to allow the CAG to carry out an audit of its KG-D6 oil & gas block. But the company bowed down to the auditor's insistence after the petroleum ministry declared that it was necessary for the company to allow CAG to audit the block's spending to get formal approvals for further investments.

CAG has long been demanding RIL to allow it to audit its spending on KG-D6 basin. RIL had been opposing the CAG's demand of conducting a performance audit on the basin, where production has slipped to just 25.11 million cubic metres a day. However, the company later announced that it was not opposed to auditing of its KG-D6 spends by the national auditor.

People familiar with the developments said RIL softened its stance over the issue after the national auditor wrote a letter to the petroleum ministry asking it to not endorse any further investments in the company's KG-D6 lock.

The petroleum ministry withdrew the EGoM note issued earlier which was against any increase in prices of gas from KG-D6 basin.

The drawn-out issue is now expected to resolve in a day of two.