Centre seeks $1.55 bn from RIL, company seeks arbitration

The Centre issued a $1.55 billion claim from Reliance Industries and its partners for drawing natural gas belonging to state-owned ONGC in the KG Basin over the last seven years.

The claim is in line with the recommendations of the one-man AP Shah committee set up to look into the matter. The committee’s report recommended that RIL pay the government compensation for extracting natural gas that had flowed from ONGC’s portion of the field to RIL’s side.RIL has said it would seek arbitration under the terms set out in the production-sharing contract.