The government is mulling over action against Reliance Industries (RIL) for buying all the coal bed methane (CBM) it produced allegedly violating a policy, according to a report by The Economic Times.
The government is looking at options to either terminate the production-sharing contract (PSC) or invoke arbitration to penalise the company. It has already informed RIL of its objection to the gas sale, but the company has asserted that it acted transparently and correctly.
“There are two options — terminate the PSC or invoke arbitration. The government is yet to make up its mind on which course to take,” a source told the newspaper.
