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Govt to get tough with RIL on fall in KG-D6 gas output

Thursday 24th Nov 2011 1367

New Delhi : LawMin backs OilMin on restricting development expenditure; PSC review possible.

The government will decide on restricting the expenditure that Reliance Industries Ltd (RIL) is allowed to recover from the investments made in the KG-D6 block in the next three-four weeks. The move has been triggered by RIL’s failure to match the projected gas output in the country’s biggest gas field.

Petroleum secretary G C Chaturvedi said the petroleum ministry had sought the law ministry’s opinion (on restricting cost recovery — now at 100 per cent — in proportion to the gas output).

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