Reliance Industries (RIL) has dipped 1.28% to Rs 562 on the BSE on the news that petroleum & natural gas ministry is considering action against the company for hiring a floating production, storage and offloading (FPSO) vessel for its KG-D6 block, after the submission of a report by Comptroller and Auditor General (CAG).
According to sources close to the development, the auditor has sought an action-taken report from the ministry and the Directorate General of Hydrocarbons (DGH) twice over hiring of the FPSO. Earlier, the CAG had questioned a $1.1-billion contract given to the Aker group for hiring the FPSO vessel, saying the rate of $107.5 million could not be justified.
CAG pointed out the vessel had cost the Aker group only $71.5 million. So a person close to the development said that if action was taken, RIL might not be allowed to make a cost recovery for the value of the contract, "leading to a fine of some $1.1 billion".
The stock opened at Rs 571, touched a high of Rs 574.80 and a low of Rs 558 on the BSE. Over, 2,408,188 shares were traded on both the stock exchanges so far.