November 5, 2016 1:59 PM

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Centre imposes Rs 10,000 cr penalty on RIL and its partners

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. <br/><br/>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. <br/><br/>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.<br/><br/>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.

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