An arbitral panel that includes two former chief justices, S P Bharucha and VN Khare, will try to resolev the dispute between Reliance Industries (RIL) and the ministry of petroleum and natural gas.The two sides have a disagreement over the recovery of cost for developing the eastern offshore KG-D6 gas fields. The Supreme Court had approved the setting up of the arbitral panel for the resolution of the dispute. Justice SS Nijjar has disposed a plea from RIL and said that the two arbitrators will appoint a third arbitrator and aim to resolve their differences.
The government had maintained that there is not dispute and no arbitral panel is required for the matter. However, it has now appointed Justice Khare as its nominee. The government is now looking to resolve the issue through arbitration.
Oil Minister Jaipal Reddy has been asking the company to stat sharing the accounts with the CAG. The block's management committee is set to meet soon to discuss matters. The minister had asked the company to provide data for audit last month. Reliance Industries Ltd has agreed to share the KG-D6 accounting details with the CAG under the purview of the production sharing contract (PSC).
The minister had assured the company that the government will work to increase approvals for various proposals in four blocks, including KG-D6. The management committee of Reliance Industries' KG-D6 block will review the commercial viability of the three new gas discoveries.
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