The government should terminate its KG D6 gas block profit-sharing contract with Reliance Industries Ltd (RIL) as the Mukesh Ambani-led firm has failed to fulfill the conditions of the contract, Senior CPI leader Gurudas Dasgupta said.

Dasgupta alleged that RIL and its partner BP have been in `wilful default' of the profit-sharing contract for more than three years. He urged the government to direct the Petroleum Ministry to start proceedings for termination of the contract and taking over the block by the government.

Accusing the company of `wilful default,' he said, "In view of this, the only alternative available is to terminate the contract as per Article 30 of the PSC forthwith ... I would request you to direct the Petroleum Ministry to begin proceedings for termination of the KG-D6 block."

Dasgupta also targeted Petroleum Minister Veerappa Moily, accusing him of the gas price hike that he is advocating would benefit only the companies.

Meanwhile, RIL Chairman Mukesh Ambani and BP Chief Executive Bob Dudley on Friday met Petroleum Minister Veerappa Moily and Finance Minister P Chidambaram, and promised to make investments of up to $10 billion to boost gas output.

Mr. Dudley told the ministers that BP was committed to work with the Indian government in their quest for energy security. However, he also voiced concerns over the huge penalty that the government is considering to impose on RIL-BP for their failure to meet the KG-D6 gas block output targets.