- The government on Reliance – Violated Production Sharing Contract in Panna-Mukta-Tapti Field
- Govt appeals in Delhi High Court to ban Reliance’s assets sale, hearing on 6 February
- Reliance deals to sell 20% shares of the refining-petrochemicals business to Aramco for Rs 1 lakh crore
The plan to sell 20% of Reliance Industries (RIL) may disrupt refining. According to the Times of India report, the Delhi High Court on Friday asked Reliance and British Gas to give information about the properties. The central government had applied in September seeking a stay on the two companies from selling assets. The next hearing will be on 6 February. The government is fighting a legal battle to get the $4.5 billion (Rs 30,000 crore) Arbitration Award from these companies in a production partnership dispute with Reliance and British Gas in the Panna-Mukta and Tapti (PMT) field. This contract, which took place in 1994, is now over.
Reliance plans to become debt-free by March 2021
On August 12, Mukesh Ambani, chairman of Reliance Industries, said that a 20% stake in the refining-petrochemicals business would be sold to Saudi Aramco for $ 15 billion (Rs 1 lakh crore). Reliance has done this deal as part of its debt-free scheme in 18 months.
It was argued in the court on behalf of the government that Reliance Industries has a huge debt of Rs 2.88 lakh crore. To repay debt, the company is adopting avenues such as sale and transfer of assets. If this process continues further, the government will have nothing left to pay the arbitration award. The government is not aware of Reliance’s business plan.
The government has been fighting for the Arbitration Award since 2010. According to the government, Reliance and British Gas violated the Production Sharing Contract and retained a considerable amount. In 2016, the tribunal ruled in favor of the government. The government had estimated $ 3.8 billion in arrears on both. This amount, including interest, has reached $ 4.5 billion. The government had filed a petition in the High Court due to non-receipt of funds from Reliance and British Gas.