Indian Govt slaps $579 million penalty on Reliance

The Indian government has announced a new penalty of $579 million on the country's largest private company, Reliance Industries, for failing to meet commitments to supply gas for the fourth year in a row. Oil Minister Dharmendra Pradhan told parliament on Monday that Reliance supplied only 9.77 million standard cubic meters per day of gas from its KG-D6 gas field in the Bay of Bengal last year, a fraction of its target of 80 million. Under the terms of the contract, Reliance can deduct all of its capital and operating expenses before sharing profits with the government, according to Reuters.