ADAG alleges RIL diverting govt revenue from marketing margin

ADAG alleges RIL diverting govt revenue from marketing margin

New Delhi: 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.

“Please note that by continuing the supply of gas to the extent aforesaid, we should not be deemed to have waived our notice of suspension dated 22 September or any of our right under the GSPA or our letters dated 22 September or accepted the obligation to resume supply of gas at all till the payment default on your part is continuing,“ Suresh wrote.

RIL earlier this month had written to R-Infra saying its notice for postponement of the planned 35-day maintenance shutdown of its 220-MW Samalkot power plant was not in conformity with the Gas Sales and Purchase Agreement (GSPA).

R-Infra on September 24 informed RIL of postponing the planned maintenance shutdown from 27 September by one day.

RIL said its decision was without prejudice to any of its rights and contentions, its notice of suspension dated 22 September and its rights to “recover full price of gas and the marketing margin for the entire quantity of gas supplied".

R-Infra had in April signed GSPA to buy 0.19 mmscmd of KG-D6 gas at government approved rates. The allocation was raised to 0.56 mmscmd on a ‘fall-back´ or temporary basis as not all of the initial customers identified for RIL gas were taking their allocated volumes.

The Anil Ambani Group paid marketing margin for the initial 4-5 months of supplies but stopped payments this month.