CCEA allowed RIL Higher Gas Prices in Lieu of Bank Guarantee

The Cabinet Committee on Economic Affairs (CCEA) allowed Reliance Industries Ltd (RIL) to sell natural gas at the revised doubled price from April, 2014 provided the firm gave a bank guarantee.
The contractor would be allowed to sell D1 and D3 (fields) gas at revised prices from April 1, 2014. The sale would be permitted on the basis of a bank guarantee by RIL in favor of the government.
The bank guarantee (around $9 billion )will be encashed if it is proved that the company stored gas or deliberately put down production at the main Dhirubhai-1 and 3 (D1 and D3) fields in the eastern offshore KG-D6 block.
Note: The new gas pricing formula will be applicable to all producers and all forms of gas including Coal-Bed Methane (CBM) and shale gas.

Month: Current Affairs - December, 2013