Moily pulls Reddy note against KG price hike

Nov 21 2012, 01:42 IST
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SummaryIn a rare administrative move, petroleum and natural gas minister Veerappa Moily has withdrawn a note circulated by his predecessor Jaipal Reddy to the members of a ministerial panel, which had opposed an immediate price hike sought by Reliance Industries for the gas from its KG-D6 block.

stands at around 30 mmscmd and could fall further to 20 mmscmd by 2014.

Reddy had also sought to disallow $1-billion capital expenditure recovered by the company which, if accepted, would have inflated its profits from the KG D6 block by $2.2 billion as per an investment multiple ratio agreed to by the government earlier. The matter is now under arbitration.

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