Mukesh Ambani calls on PM as gas row simmers | business | Hindustan Times
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Mukesh Ambani calls on PM as gas row simmers

As the petroleum ministry looks to penalise Reliance Industries Ltd (RIL) for the steep fall in output from its east coast KG-D6 gas field, the biggest gas field in India, the company’s chairman and managing director Mukesh Ambani on Thursday called on Prime Minister Manmohan Singh. HT reports. Destination Delhi

business Updated: Nov 25, 2011 00:55 IST
HT Correspondent
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As the petroleum ministry looks to penalise Reliance Industries Ltd (RIL) for the steep fall in output from its east coast KG-D6 gas field, the biggest gas field in India, the company’s chairman and managing director Mukesh Ambani on Thursday called on Prime Minister Manmohan Singh.

After his meeting in the PM’s office in Parliament House, all that Ambani told the reporters was, “I met him just like that.”

While the company’s spokesperson did not give any details, sources close to RIL said Ambani’s visit follows statements by petroleum secretary on Tuesday that the ministry will in 3-4 weeks take action to limit the amount of expenditure Reliance can recoup from its KG-D6 fields, on account of falling gas output.

However, it could not be confirmed if Ambani had had indeed raised the issue. His company has said if such a step is initiated, it is contrary to the production sharing contract (PSC).

As reported by HT on Tuesday, the petroleum ministry is calculating the proportion of expenditure that it will disallow.

Chaturvedi had said on November 22 that his ministry has received the views of the law ministry on the issue and is examining the same.

The ministry is planning to disallow some expenditure incurred by RIL in constructing production and processing facilities at its KG-D6 gas fields in the Krishna Godavari Basin.

While Chaturvedi had clarified that the law ministry had not quantified the amount, petroleum ministry sources say around $1.85 billion (R9,600 crore) out of the $5.69 billion (R29,600 crore) investment already made in the facilities may be disallowed.

Reliance is currently producing 42 mmscmd of gas from the fields against 60 mmscmd achieved earlier, and the promised 80 mmscmd as per the development plan.