Indian government just won over $1 billion price dispute with Reliance, British Gas

The Indian government won a dispute which was initiated six years back by Reliance Industries and Indian arm of British Gas.

The government won an international arbitration involving potential claim of more than $1 billion, following a gas price and royalty dispute in the PannaMukta and Tapti fields off the Mumbai coast.

The London-based arbitration panel dismissed RILBG's main demands for higher cost recovery limit.

Officials aware of the development told ET initial feedback indicated a favourable outcome for the Centre on major issues, but some ground was also given to the joint venture.

RIL is in the process of reviewing the FPA and the dissenting opinions in detail and shall be taking the appropriate next steps based on legal advice.

RIL and BG have 30 per cent stake each in the PMT fields and had initiated the arbitration in December 2010.