Oil Ministry has slapped $250 mn profit petroleum penalty on Reliance Industries Reports

According to a report, Oil Ministry has slapped the penalty of $250mn on Reliance industries to make good government’s loss owing to company’s inability to meet the natural gas production targets from the Krishna Godavari KG D-6 block.

Mukesh Ambani

According to a senior official, in a communication sent to RIL on June 3 by the government, the penalty has revised from $195 million as on March 31, 2014, to $246.9 million till March 31st.

Notably the profit petroleum is the main source of revenue for the government from a hydrocarbon block.

On the other hand, RIL declined to comment on the notice sent to them by the government.