Reliance Industries Ltd (RIL) has announced that the government has approved its $7.2 billion deal with global energy major BP. This deal will ensure that the latter will be taking the 30% stake in 21 oil and gas blocks of Mukesh Ambani's company.

Around 23 blocks were sent by reliance for government's approval. However, the government has approved 21 blocks and the other two have been held back due to some technical issues.

The company has notified that with the governments' approval largest foreign investment in the domestic hydrocarbon sector will be witnessed, which will lead to the prosperity of the country and nation.

During the signing of the deal, BP had said that it may pay another $1.8 billion to the Mukesh Ambani's firm on the basis of successful exploration and also the deal size may increase to $20 billion, with the future performance payments.

Reliance said in a statement, "BP will take 30 percent stake in 21 oil and gas production sharing contracts that Reliance operates in India, including the producing KG-D6 block". This deal will envisages the performance payment of around £1 billion, if the bind directs towards the discovery of more oil.