Reliance Industries Ltd (RIL) may e slapped with an additional hefty fine of $781 million for its failure in supplying the fixed quantity of natural gas from its KG-D6 block.

RIL produced an average of only 26.07 million metric standard cubic metres per day (mmscmd) of gas from its KG-D6 block in 2012-13, as against the fixed target of 86.73 mmscmd.

In July, the Directorate General of Hydrcarbons (DGH) recommended to the Petroleum & Natural Gas Ministry that the cost of $781 million that RIL had incurred in KG-D6 blocks should be disallowed for the deficit in the gas production.

The Petroleum & Natural Gas Ministry has now sought the Law Ministry's opinion for imposing the recommended penalty on RIL.

This penalty will be in addition to $1.005 billion in cost recovery that has already been disallowed for shortfall in gas production during 2010-11 and 2011-12.

Vivek Rae, secretary to the petroleum ministry, said, "We have already issued notice to RIL for a $1.005 billion penalty for shortfall in production during 2010-11 and 2011-12."

In a separate development, the Petroleum & Natural Gas Ministry has moved Cabinet to deny RIL a higher price for gas produced from its KG-D6 fields till the dispute over production shortfalls is not resolved.