Reliance KG-D6 basin: Some facts of the case

Mindboggling article in Frontline (March, 2014 edition) on Reliance KG-D6 basin. Many facts realised. Thanks to Frontline and Mr. Arkos.
During my Bangalore visit on the eve of "Digital and social media programme at IIM" , had an interaction with our "Iconos'-Google" Mr. Arkos. He was the one who presented some facts of the case, which generated curiosity to read more about KG basin. I know I am too late to read this. Thanks to overexposure to Media and confusion created by it.
Some of the facts are mentioned below regarding the case,

• RIL Discovery area = 7645 sq.km; Exploration Area= 390 Sq.km; As per contract it was supposed to relinquish the remaining area.
• KG/D6 basin = 9/18 fields are working presently; RIL dint fulfill its commitments of production for which a notice by Jaipal Reddy was sent to him in July 2012. He was transferred in October 2012.
• Contract was till 2019 after which the rates were supposed to be revised.
• Actual Gas production = 14.67mscmd/80mscmd. (Million standard cubic meters per day) – Only 18% of actual
• Production sharing agreement with Govt.
• Investment Multiple (IM)= Total Revenue/Total Investment
• If IM <1.5 Profits to RIL = 80% and Govt =20% of total
• IF IM>2.5 then Profits to Govt= 85%
• RIL has raised its Capital Expenditure from $2.4billion in 2004 to $8.8 billion in 2006 keeping IM below 1.5
• Gas prices raised from $2.34/mBtu to $4.2/mBtu in 2007 (by Milind Deora)
• Further proposed to raise it to $8.4/mBtu from April 2014; The hike is proposed based on the recommendations of Ragarajan Committee report.
• Fluctuations in dollars would further benefit Reliance. Reliance will be selling gas in India then why the rates are in dollars?
• Well head Gas price = $1.43/mBtu.
• In 2009 RIL gave its Gas price cost calculations to the Ministry as $1/mBtu.
• Niko Resources- partner RIL signed 25 yrs contract with Bangladesh to supply gas at $2.34/mBtu.
• During 2014-19 with new rates; Additional subsidy burden for the Govt = Rs. 71250 Cr
• RIL profits during 2014-19 = Rs. 64k Cr

Interesting phase of life. Rightly pointed out by Ratan Tata, "Feel fortunate to be in this eventful era". 

Lets see how the things unfold. It would be interesting to see the reactions of new government post Election period and if SC's final verdict comes out on the PIL filled by former Cabinet Sec Mr. Subramaniam and others. 

http://www.frontline.in/cover-story/the-gas-price-fix/article5739914.ece?ref=sliderNews