Government’s recovery announcement makes Reliance Industries’ scrip lose pace

Following the government’s move to recover the cost of developing KG-D6 fields in 2015-16 as the output from the field fell short of the target, the scrip of Reliance Industries Limited (RIL) lost some of its charm at the bourses.
 
The government has disallowed nearly USD 264 million of the exploration and production cost the consortium of RIL, BP Plc. and Niko Resources wanted to recover in 2015-16 from the revenue generated by their D6 block in the Krishna-Godavari (KG) basin, reported a leading business daily. The output from KG-D6 fields has remained far short of the targeted 80 million standard cubic metres a day (mmscmd) for years, and has now fallen to under 4 mmscmd. 
 
The stock lost by about 1.16% to trade at Rs 1,554.95 per share on the BSE. On a yearly basis the stock has yielded 50.97% returns and outperformed the BSE Sensex and BSE Oil & Gas index.