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| RIL diverting crores of govt revenue from mktg margin: ADAG |
| Press Trust odf India / New Delhi Sep 28, 2009, 13:34 IST |
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An Anil Ambani group company has asked the oil ministry to stop RIL from charging marketing margin on gas, alleging that the Mukesh Ambani-led firm was not sharing the revenue and "diverting" crores 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 that whether Reliance Industries was justified to charge the 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 $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.
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