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Regular-article-logo Saturday, 23 August 2025

Penalty call on Reliance deferred

The oil ministry has asked its technical arm DGH to fix the compensation to be paid by Reliance Industries to ONGC for selling natural gas that had seeped in from an adjacent block of the PSU.

Our Special Correspondent Published 01.10.16, 12:00 AM

New Delhi, Sept. 30: The oil ministry has asked its technical arm DGH to fix the compensation to be paid by Reliance Industries to ONGC for selling natural gas that had seeped in from an adjacent block of the PSU.

Oil minister Dharmendra Pradhan, who had previously stated that his ministry would decide on the issue by September-end, today said the directorate-general of hydrocarbons (DGH) will calculate the compensation within one month.

In a report presented to Pradhan on August 31, the Justice AP Shah Committee had said that RIL should pay the government for the natural gas it has drawn from an adjacent ONGC block in the KG basin of the Bay of Bengal in the past seven years.

"We have accepted the Shah Commission's recommendations entirely. Compensation has to be calculated. Whatever Shah has recommended, the government has accepted that," Pradhan told reporters here.

On August 31, Pradhan had said that the ministry, under an order of the Delhi High Court, has a month to decide on the issue from the date of presentation of the report.

"Yes, we will seek compensation. That needs to be quantified. There has been migration. There is some protocol on how to look into the issue. The DGH will be asked to calculate the amount. They will calculate the amount in one month," he said today.

Once DGH calculates the amount, notices will be served, he said. In its report, the one-man Shah panel had said the Mukesh Ambani-run company should pay for the gas that had migrated or seeped from the ONGC blocks into its gasfields.

"RIL's action of producing and selling gas that migrated from the ONGC block is unjust enrichment," the report said, adding that over 11 billion cubic metres of gas had flowed from the ONGC block to RIL's fields between April 1, 2009 and March 31, 2015. Of this, RIL has already extracted about 9 billion cubic metres.

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