Centre Slaps Rs 24,500-Cr Penalty On Reliance, BP

New Delhi: The government has slapped a $2.81 billion (Rs24,500 cr) demand notice on Reliance Industries Ltd (RIL) and its partners, including BP Plc for gains made from producing and selling natural gas that may have migrated from neighbouring block of state-owned ONGC.

This follows the Delhi High Court’s decision on February 14, overturning an international arbitration tribunal ruling that held the duo not responsible for paying any compensation for the gas they produced and sold which had allegedly migrated from adjoining fields.

“Consequent upon the Division Bench judgment, the Ministry of Petroleum and Natural Gas has raised a demand of $2.81 billion on the PSC contractors namely Reliance Industries Ltd, BP Exploration (Alpha) Ltd and NIKO (NECO) Ltd,” Reliance said in a stock exchange filing.

Originally, Reliance held 60 per cent interest in Krishna Godavari basin deep-sea block KG-DWN-98/3 or KG-D6 while BP had 30 per cent and Canadian firm Niko held the remaining 10 per cent. Subsequently, Reliance and BP took over Niko’s interest in the production sharing contract (PSC) and now hold 66.66 per cent and 33.33 per cent, respectively.

Penalty for missing battery deadline

The government has slapped a penalty on a unit of RIL for failing to meet the deadline for setting up a battery cell plant for which it was granted PLI, the firm said on Tuesday.

In a stock exchange filing, Reliance said its step-down subsidiary, Reliance New Energy Battery Storage Ltd on March 3 received ‘a letter from the Ministry of Heavy Industries levying liquidated damages at the rate of 0.1 per cent of the performance security (Rs50 cr) for each day of delay.