Mukesh Ambani's Reliance Industries (RIL) on Tuesday told the exchanges that it received a $ 2.81 billion notice from the Oil Ministry on a long-pending gas dispute related to the KG-D6 operations. In another announcement made to the stock exchange, RIL also said that its new energy -owned subsidiary has received a letter from the Ministry of Heavy Industries (MHI), which is about compensation related to the battery project.
On the gas dispute, RIL said that the Ministry of Petroleum and Natural Gas has demanded a Production sharing contract (PSC) contractors – RIL, BP Exploration (Alpha) Limited and Nico (NECO) Limited by US $ 2.81 billion. RIL said that it received a letter in this regard on Monday.
This demand notice has been issued after a recent order of the Delhi High Court on 14 February in which the Delhi High Court bench reversed the order of the single judge of the Delhi High Court passed in May 2023. The May 2023 order rejected the appeal of the Government of India challenging the previous arbitration decision. RIL said on Tuesday that the company 'legally advised that the decision of the division bench and this demand is temporary.'
In July 2018, RIL won an arbitration case for an amount of US $ 1.55 billion against the Claim of the Government of India at the KG-D6 Consortium due to alleged gas supply from ONGC blocks. RIL said it was taking steps to challenge the decision of the Delhi High Court bench. RIL said, “The company does not expect any liability in this matter.”
Safnik Gandhi, managing partner of Chambers of Sranik Gandhi, said, “It is quite interesting that claims are being made against the Consortium of RIL, while in fact it seems that there is no order in favor of the Government of India and this order has been retained by the court of any law to claim against the Consortium of RIL.”
In a separate notification, RIL also told the exchanges that Reliance New Energy Battery Storage Limited (RNEBSL), a company -owned subsidiary of the company, received a letter from the Ministry of Heavy Industries (MHI) on Monday. On Monday, RIL's stock closed with a decline for the second consecutive day. The stock fell 0.8 per cent from its previous closed price to close at Rs 1,161.70. On Monday, RIL shares fell by 2.4 per cent.
First Published – March 4, 2025 | 10:31 PM IST
