Oil Min sanctions 'scrupulous' action against RIL

Contrary to the Production Sharing Contract (PSC), the ministry has decided to disallow expenditure incurred in constructing production/processing facilities at Dhirubhai-1 and 3 gas fields in KG-D6 block that are currently under utilised/have excess capacity because of falling output.

Sources privy to the decision, taken by the ministry earlier this month, said that based on the Solicitor General's opinion, which was concurred by Law Minister Salman Khurshid, $1.85 billion -- out of the $5.694 billion investment already made -- will be disallowed and arbitration initiated to recover that from RIL.

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