Govt Slaps Rs 2500 Crore Additional Penalty On Reliance Industries

The Logical Indian

September 7th, 2016 / 1:52 PM

Source: hindustantimes | Image Courtesy: biovoi

The Central Government had slapped an additional fine of $380 million (around Rs 2,500 crore) on Reliance Industries and its partners last month for producing less than targeted natural gas from the eastern offshore of KG-D6 fields (Krishna Godavari basin).

With this, the total penalty, which is in form of disallowing recovery of cost incurred, for missing the target in five fiscal years beginning April 1, 2010, now stands at a cumulative $2.76 billion.

The Production Sharing Contract (PSC) allows Reliance India Limited and its partners BP Plc of the UK and Canada’s Niko Resources to deduct all capital and operating expenses from the sale of gas before sharing profit with the government.

“Up to financial year 2013-14 the cost recovery proposed to be disallowed was USD 2.376 billion and consequent demand of Government of India share of additional profit petroleum of $195.3 million on cumulative basis.”

“On June 3, 2016, the company received a revised claim up to year 2014-15 with a disallowance of USD 2.756 billion on cumulative basis and consequent demand of Government of India share of additional profit petroleum of USD 246.9 million, also on cumulative basis,” RIL said in a regulatory filing.

Gas output from Dhirubhai-1 and 3 gas field in the eastern offshore KG-D6 block was supposed to be 80 million standard cubic meters per day but actual production was only 35.33 mmscmd in 2011-12, 20.88 mmscmd in 2012-13 and 9.77 mmscmd in 2013-14. The output has been around 8 mmscmd in subsequent years.

The output was behind target in 2015-16 as well and the government is yet to issue a cost disallowance notice for that. So far, no confirmation has been received whether RIL has successfully paid the total sum of the penalty or not.


Contributors

Edited by :

Share your thoughts..

Related Stories

IIM Govt Funding

Govt Says No To Additional Funding To Six New IIMs, Wants Them To Be Self Sufficient

Lt Gen LN Singh

No Home After Retirement, Lt General With 2500 Families Waiting For Promised Houses Since 2016

Aseem Sawhney

JK: Former Lawyer Of Kathua Rape Accused Appointed As New Additional Advocate General

With 60,000 Deaths Last Year, SC Asks Govt- What’s More Important, Saving Lives Or Industries

Nirav Modi

PNB Scam: Reports Show Rs 3000 Cr Additional Fraud From 17 Other Banks; SBI Reports Exposure Of Rs 1,360 Cr

Ulhas river

SC Orders Civic Bodies, Industries To Pay Rs 96 Crore For Polluting Ulhas River, Mumbai

Latest on The Logical Indian

News

Tamil Nadu: Over 70 injured In First Three Days Of Jallikattu Festival

News

Height Of Taboo: In Uttarakhand, Menstruating Women Were Kept Confined In Govt-Funded Building

Sponsored

Your Ratings In The Social World Might Have A Purpose Behind It

Exclusive

UPSC Protests Gain Momentum: Aspirants Demand Compensatory Attempt Due To Change In Exam Pattern

News

Prayagraj Kumbh Mela 2019: The Costliest At An Expense Of Rs 4,236 Crore

Awareness

Of Counsel: Not A Gossip-Laden Story Of Modi-Jaitely Politics, But A Retrospective On Their Economic Policies

x

Stories that deserve attention, delivered to your inbox!

Handpicked, newsworthy stories which deserve the attention of a rational generation.