RIL shares up 2 per cent as Oil Minister promises fast decisions

Reliance Industries shares (RIL) rose on the Bombay Stock Exchange following hopes that the appointment of new Oil and Petroleum Minister Veerappa Moily would improve relationship between the government and the oil and gas major. Besides this, Moily's statement as new Oil minister on quick decisions and creating an environment conducive for investment to flow in also helped RIL shares gain.

RIL's share price had risen 1.75 per cent to 813 on the Bombay Stock Exchange at 12.30 pm on Monday.

After a bullish opening, shares of the energy major further gained 1.9 per cent to Rs 814.20 on the BSE. At NSE, the stock climbed 1.93 per cent to Rs 814.40.

The company had faced difficult times during the tenure of Jaipal Reddy as the oil minister. The ministry had imposed a penalty of over $1 billion for a steep decline in gas output from Reliance operated D6 block.

During his 21-month tenure, Reddy took on Reliance Industries Ltd (RIL), the first time any minister had done so after Mukesh Ambani took charge of the company.

He refused to clear the expenditure of RIL's iconic KG D6 gas field, off the Andhra Pradesh coast. He held back clearances required for commercial production from RIL's blocks in the Mahanadi basin in Orissa and Kaveri basin in the south. Reddy also delayed clearance of RIL's deal with BP, which included a 30 per cent stake sale to BP in 23 blocks, including KG-D6, for $7.2 billion.