Gas Row: Govt Sends $2.81-Bn Demand Notice to RIL, Partners

Another for missing deadline to set up battery cell plant

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Billionaire Mukesh Ambani's Reliance Industries has been slapped with two separate demand notices by the government - one seeking $2.81 billion (about Rs 24,500 crore) for producing gas belonging to state-owned ONGC, and another for failing to meet the deadline for setting up a battery cell plant.

The $2.81 billion demand note follows the Delhi High Court's order on February 14, overturning an international arbitration tribunal ruling that held Reliance and its partner BP Plc of the UK 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 a 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.