Up to 3,000 crore liability in KG-D6 row: RIL

NEW DELHI: Reliance Industries has estimated a maximum liability of $400 million (Rs 3,000 crore) in its nine-year dispute with the government over alleged under-utilisation of capacity at the KG-D6 field due to failure to comply with an approved investment plan.
Natural gas output from Dhirubhai-1 and -3 gas fields in the KG-D6 block in the Bay of Bengal started to lag company projections from the second year of production itself in 2010 and the field ceased to produce in February this year, much ahead of its projected life.
The government blamed the phenomenon on the company not sticking to the approved development plan and disallowed over $3-billion costs. The company disputed this and dragged the government to arbitration.
Reliance held 60% interest in KG-D6. BP had 30% and Canada’s Niko 10%.