The Oil Ministry has returned a bank guarantee of Rs.509.55 crore submitted by Reliance Industries Ltd (RIL) to get a higher price for natural gas it produces from the eastern offshore KG-D6 field, saying the new rate has not been announced, according to sources.
The surety, given on April 10, covers the incremental revenue RIL would have received in the April-June quarter if the price of gas were to double to $8.4 per million British thermal units.
Sources said RIL provided the bank guarantee even though the Election Commission had asked the government to defer implementing the new rate, which was to have come into effect from April 1, until completion of the general elections.
The Oil Ministry returned the guarantee, saying the new price has not been notified and RIL would have to submit the surety as and when it is announced.
The surety, given on April 10, covers the incremental revenue RIL would have received in the April-June quarter if the price of gas were to double to $8.4 per million British thermal units.
Sources said RIL provided the bank guarantee even though the Election Commission had asked the government to defer implementing the new rate, which was to have come into effect from April 1, until completion of the general elections.
The Oil Ministry returned the guarantee, saying the new price has not been notified and RIL would have to submit the surety as and when it is announced.