Reliance Industries calls government's $3 billion demand premature
Labourers work behind an advertisement of Reliance Industries Limited at a construction site in Mumbai Photograph: (Reuters)
The government's demand for an additional share in the profits and royalty from the contractors of Panna Mukta and Tapti oil and gas fields is "premature", Reliance said.
Reliance and Royal Dutch Shell own 30 per cent interest each in the fields, off India's west coast, while Oil and Natural Gas Corporation (ONGC) holds the remaining 40 per cent.
India sought $3 billion from the companies after an international tribunal upheld the government's view that profit from the fields be taxed at the current rate of 33 per cent and not the earlier 50 per cent, the Economic Times newspaper reported.
The government has sought the additional payments in line with the arbitration tribunal's final partial award dated October 12, Reliance 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, Reliance said, adding the company had already responded to the government's demand notice.