The government has slapped an additional penalty of $380 million on Reliance Industries and its partners for producing less than targeted natural gas from the eastern offshore KG-D6 fields.
With this, the total penalty for missing the target in five fiscal years beginning April 1, 2010, now stands at a cumulative $2.76 billion.
"Up to financial year 2013-14, the cost recovery proposed to be disallowed was $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
$2.756 billion on cumulative basis and consequent demand of Government of India share of additional profit petroleum of $246.9 million, also on cumulative basis," RIL said in a regulatory filing.
The company said that disallowance of cost is currently under arbitration.
"Every year, based on its own interpretations of the PSC and assumptions (with which the contractor group does not agree), the Ministry of Petroleum and Natural Gas revises the total cost it proposes to disallow and consequently aggregates the figure with figures of the previous years. It also demands additional profit petroleum (in total including previous year claims as well) as Government of India share," the filing said.