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Govt demand for larger share in profit from oil fields premature: RIL

Centre sought $3-bn from the firms after an international tribunal upheld the govt's view

Reuters  |  New Delhi 

Govt demand for larger share in profit from oil fields premature: RIL

The government's demand for an additional share in the profits and royalty from the contractors of and is "premature", Industries said in a statement on Tuesday.

and own 30 percent interest each in the fields, off India's west coast, while Oil and Natural Gas Corp holds the remaining 40 percent.

India sought $3 billion from the after an international tribunal upheld the government's view that profit from the fields be taxed at the current rate of 33 percent and not the earlier 50 percent, the Economic Times newspaper reported on Tuesday.

Shares of fell 2.05 percent on Tuesday to 1,519 rupees, dragging the BSE Sensex lower.

The government has sought the additional payments in line with the arbitration tribunal's final partial award dated Oct. 12, said.

"The quantification of liabilities (if any) of the parties arising out of the Partial Award have to be determined by the Arbitration Tribunal after the Parties have made their respective submissions on quantification," the company added.

The arbitration tribunal is yet to schedule the timeline for the quantification phase, said, adding the company had already responded to the government's demand notice.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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