Business Standard

RIL resumes gas supply to Anil group's Andhra power plant

Image

Press Trust of India New Delhi

Reliance Industries resumed the supply of natural gas to Anil Ambani Group's power plant in Andhra Pradesh on October 26 after the company agreed to pay all charges on the fuel.

"In view of you... Having paid the amounts due, including the marketing margin as per the last invoice... We propose to resume supply of gas with effect from October 26," RIL wrote to Reliance Infrastructure Ltd last week.

R-Infra had stopped paying USD 0.135 per mmBtu marketing margin charged by RIL on sale of 0.56 mmscmd of gas to its 220 MW Samalkot power plant. This prompted RIL to issue a notice of suspension of supplies. R-Infra relented but said it will pay the "illegal" marketing margin "under protest" and sought withdrawal of the suspension notice.

 

"We do not accept your contention that you are not obliged to pay the marketing margin," RIL Senior Vice President R Suresh wrote to R-Infra on October 25. "All payments made by you will be appropriated towards teh amount due and payable by you to us under the Gas Sales and Purchase Agreement (GSPA) and we will not recognise any payment as h aving been made under protest."

Anil Ambani Group spokesperson did not immediately offer any comments.

R-Infra had on October 24 written to RIL saying it had agreed to making further payments towards marketing margin under protest till the issue is finally resolved. "We have taken up the matter with Petroleum Ministry and are awaiting their response."

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Oct 26 2009 | 7:52 PM IST

Explore News