Oil ministry returns RIL’s R509 cr bank guarantee

Sources said RIL provided the bank guarantee even though the Election Commission had asked the government to defer implementing the new rate.

By: Press Trust of India | New Delhi | Published: May 5, 2014 12:41:32 am

Reliance Industries had submitted a bank guarantee of Rs 509.55 crore to get a higher price for natural gas it produces from the eastern offshore KG-D6 field, which the oil ministry has returned, saying the new rate hasn’t been announced.

The surety, given on April 10, covers the incremental revenue RIL would have got in the April-June quarter if the price of gas were to double to $8.4 per million British thermal units.

Sources said RIL provided the bank guarantee even though the Election Commission had asked the government to defer implementing the new rate, which was to have come into effect from April 1, until completion of the elections.

The Oil Ministry returned the guarantee, saying the new price has not been notified and RIL would have to submit the surety as and when it is announced.

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