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Reliance Industries' partners BP and Niko Resources may have to sell their share of gas from KG-D6 at the current rate of $4.2 per unit from April 1 while others would charge double the price, according the oil ministry's latest decision that is being examined by the law ministry.

The oil ministry has argued that only Reliance Industries went to the government saying it is willing to furnish bank guarantees against an approval to charge the new rates based on the Rangarajan formula for the controversial block. The finance ministry and Parliament's standing committee on finance had objected to RIL charging new rates after the government held the company guilty of hoarding gas, leading to arbitration. The bank guarantee would be encashed if the government can prove its stated position that output from KG-D6 dropped sharply because the company deliberately suppressed production.

Source-On Request