RIL, partners face fresh Rs 1,700-cr penalty
The government has imposed a new penalty of $264 million (about Rs 1,700 crore) on Reliance Industries (RIL) and its partners BP and Niko Resources for producing less than the targeted natural gas from eastern offshore KG-D6 fields in 2015-16. The production sharing contract allows RIL and its partners to deduct all capital and operating expenses from the sale of gas before sharing profit with the government. Disallowing costs will result in government's profit share rising. RIL's output has continued to drop in subsequent years and is now below 4 mmscmd.