Centre imposes Rs.10,000 cr penalty on RIL

Government has slapped a nearly 10,000 crore rupee fine on Reliance Industries Limited (RIL) and its partners BP and Niko for pumping out gas that flowed to the Krishna Godavari-D6 Block from an adjoining field owned by ONGC. 

The Centre has given RIL a month to respond. The Oil Ministry, in a notice, to all the three partners sought 1.47 billion dollars for producing nearly 338 million British thermal unit in seven years ended March this year.After deducting



about 72 million dollars royalty paid on the gas produced and adding an interest at the rate of Libor plus 2 per cent totaling nearly 150 million dollars, a total demand of 1.55 billion dollars was made on RIL, BP and Niko.

RIL said, it will issue a notice of arbitration against what it called was a globally unprecedented and arbitrary decision. It said, it carried out its activities within the boundaries of the block it operates and abided by the law.