Oil Min issues notice to RIL;disallows $1.8bn cost recovery

The Oil Ministry has issued a notice to Reliance Industries disallowing USD 1.79 billion in cost recovery at KG-D6. The notice also mentions an additional amount of USD 795 million.

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The ministry and Reliance Industries have already entered into arbitration over this and the energy major has already started looking at legal options. RIL's counsel Harish Salve and a team of the company is in London discussing the future strategy and perhaps even this is all going to go into arbitration.
The other issue is that of the new gas price regime and whether the company will be able to benefit from the new gas price regime or not. Oil Minister Veerappa Moily once again reiterate that the CCA is going to have the final say and will announce it in perhaps a week or 10 days.