RIL and its partners, BP Plc of the UK and Niko Resources of Canada, had on May 9 served a pre-arbitration notice on the government, alleging failure to implement the decision on a gas price rise with effect from April 1. This stalling, it said, was preventing sanctioning of investments of around $4 billion.

In a statement issued on the BSE exchange on the penalty, imposed by the government for falling KG-D6 output, it said, “RIL and its partners believe the purported rationale of the government, in proportionately disallowing the cost in the ratio of actual production to the estimated production from D1-D3 fields in KG-D6 is not as per the Production Sharing Contract (PSC).”

RIL has not been able to submit a development plan for D-29, 30 and 31 gas discoveries, which hold an estimated 345 billion cubic feet of reserves, with the prescribed timelines due to dispute with the upstream regulator DGH over tests required to confirm them.

The fresh penalty, the first imposed by the new Narendra Modi-led government, is in addition to the existing fine of $1.80 billion slapped on the company for production shortfall in earlier years — $457 million for 2010-11, $548 million for 2011-12 and $792 million for 2012-13.

To be sure, this is far lower than the earlier estimated peak output of 80 mscmd, but is much above the 13 mscmd that RIL is currently producing from the block.

The trio had on May 9 issued a "pre-arbitration notice" saying failure to implement the increase from due date of April 1 is preventing them from sanctioning investments of almost US$ 4 billion this year.

The company had moved the tribunal after its application to settle charges of "illegal trading gains" through the consent mechanism was rejected by Sebi.

Tata Consultancy Services Ltd (TCS), Reliance Industries Ltd (RIL), ITC Ltd, HDFC Bank Ltd and Infosys Ltd, saw their combined headcount rise 5% from the previous year, according to data collated from the annual reports of each of the companies.