RIL, part­ners face fresh Rs 1,700-cr penalty

India Business Journal - - NEWS ROUND-UP -

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.

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