The Hindu : Business : Reliance Infra to pay marketing margin to RIL

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Saturday, Oct 10, 2009
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Reliance Infra to pay marketing margin to RIL

Special Correspondent

NEW DELHI: Within weeks of its decision to stop paying the marketing margin on gas to Mukesh Ambani-owned Reliance Industries Limited (RIL), Anil Ambani-owned Reliance Infrastructure has agreed to pay the levy under protest. It has asked RIL to resume natural gas supplies to its power plant.

At the same time, it has written to the Petroleum and Natural Gas and Power ministries to look into the issue of marketing margins stating that the levy was unauthorised and nothing short of RIL’s monopolistic position.

Reliance Infrastructure has written to RIL stating that it had issued instructions to its bank to effect full payment of the invoice raised by RIL for the supply of gas to its Samalkot power plant in Andhra Pradesh, including the marketing margin element. Reliance Infrastructure defaulted on payment of Rs. 12 lakh in marketing margin on the gas supplied to the Samalkot unit in the first half of September, leading to RIL sending a notice of suspension of supplies. “We request you to withdraw the suspension notice dated September 28 and confirm immediate resumption of the supply of gas,” Reliance Infrastructure Vice-President Kamal Kant wrote to RIL on October 7.

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