An Anil Ambani group company has asked the oil ministry to stop Reliance Industries Ltd from charging marketing margin on gas, alleging that the Mukesh Ambani-led firm was not sharing the revenue and 'diverting' crores (billion) of rupees of the government's share.
In a letter to Petroleum Secretary R S Pandey, Reliance Infrastructure also sought to know whether RIL was entitled to charge the marketing margin despite the fact that "RIL is not sharing this part of sales consideration with the government. Thus, several crores of rupees that would belong to the government are being diverted by RIL."
Demanding an early resolution to the issue whether Reliance Industries was justified in charging marketing margin, R-Infra vice president Kamal Kant said in the letter: "You are requested to advise RIL to act in terms of the Bombay High Court order and continue to supply the gas on payment of 4.2 per mmBtu."
The letter coincided with the Power Secretary H S Brahma and state-run NTPC also questioning the marketing margin, which R-Infra has termed as 'illegal' and declined to pay, prompting RIL to issue a notice for suspension of fuel to ADAG's power plant in Andhra Pradesh for payment default.
"The marketing margin being charged by RIL on sale of K-G D6 gas is fair and justified consideration for the risks and costs undertaken in the GSPA including such risks and costs beyond the delivery point," RIL President (Gas Business) wrote to Power Secretary H S Brahma.
R-Infra further told the oil ministry that RIL was not entitled to suspend the Gas Sale Purchase Agreement (GSPA), as it was continuing to pay the sale price of USD 4.2 per mmBtu.
"The issue as to whether RIL is justified and entitled to charge a marketing margin is required to be expeditiously resolved," R-Infra said, adding that RIL has not undertaken any marketing and it was violating the High Court order and the Empowered Group of Ministers' decision as it was permitted to sell gas as an interim measure at $4.2 per mmBtu.
"RIL has not undertaken any marketing and the said charge is essentially a part of sales consideration which is not shared with the government. Hence, RIL is not authorised to charge the same," R-Infra noted.
RIL to give gas to ADAG power plant till maintenance shutdown
Accusing Anil Ambani group firm Reliance Infra of faulting the contractual notice period for maintenance shutdown at its power plant, Mukesh-led RIL has decided to give gas till Monday despite the payment default.
"Under the terms of the GSPA, a change in the schedule of planned maintenance needs a 60-day prior notice. As an exception, we agree to change in planned maintenance by one day (to September 28) even though such notice was not given to us in accordance with the provisions of the GSPA," RIL's marketing head R Suresh has informed Reliance Infrastructure.
The reprieve to Reliance Infra's power plant in Andhra Pradesh, which is closing down for 35 days from Monday for annual maintenance, comes within days of RIL issuing a notice to suspend the gas to it for 'default' in payment.
"Whereas we have no obligation to continue to supply any gas to you in view of your continuing default. . . we will continue to supply gas to your plant in view of the imminent planned maintenance," Reliance Industries told R-Infra in a letter dated September 25.
RIL officials did not elaborate on as to when the notice for shutting the gas pipe would come in force in case Anil Ambani group firm did not agree to pay the marketing margin.
Terming the marketing margin on gas charged by RIL as 'illegal', Reliance Infra had refused to pay the same prompting Mukesh Ambani group company to put it on notice for non-payment of an estimated Rs 12 lakh (Rs 1.2 million) for the first fortnight of September before invoking bank guarantee to realise the amount.
