RIL KG-D6 bank guarantee issue to be settled in 2 weeks: Moily

The issue of securing $135 million in bank guarantees from Reliance Industries (RIL) would be resolved within a fortnight, Petroleum Minister M. Veerappa Moily said Tuesday.

RIL's ability to charge the higher gas price, which will come into effect from April 1, 2014, hinges on a resolution of the issue.

"I am confident of settling the bank guarantee issue with Reliance within a fortnight," Moily told mediapersons here when queried about setting a timeline for settling the matter.

The bank guarantee is being sought as the petroleum ministry considers the steep fall in the RIL consortium-operated KG-D6 gas fields' output is not because of geological reasons, as claimed by RIL, but owing to RIL's hoarding gas in order to make windfall gains when gas prices will be revised upwards almost two times next year.

If the hoarding allegations are proved, the bank guarantees would be encashed for the period from April 1 to the date the charges are proved.

Moily also said that the media was only highlighting negative news when almost all issues with RIL had been resolved

"We have, over the past few months, cleared as many as $7 billion worth investment proposals submitted by RIL," he said.