Reliance, BG sue GAIL for Rs661 crore

Reliance, BG sue GAIL for Rs661 crore
PTI
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First Published: Thu, Feb 15 2007. 03 37 AM IST
Updated: Thu, Feb 15 2007. 03 37 AM IST
New Delhi:  Reliance Industries Ltd and British Gas (BG) have initiated legal proceedings against state-run GAIL (India) Ltd to recover about $150 million (Rs661 crore) for gas supplied during June 2004 to March 2005. Reliance and BG, which along with the Oil and Natural Gas Corp.(ONGC), are jointly operating Panna-Mukta and Tapti oil and gas fields, have filed for arbitration saying GAIL under-paid them for 11 million standard cubic metres per day of gas supplied from the fields off the West Coast, industry sources said. ONGC is not part of the arbitration as a state-owned company is barred from launching legal proceedings against fellow state firm unless explicit permission is taken. BG and Reliance hold 30% stake apiece in the fields, while the remaining 40% is with ONGC.
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First Published: Thu, Feb 15 2007. 03 37 AM IST
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