Govt denies RNRL's charge of approving RIL's margin money | business | Hindustan Times
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Govt denies RNRL's charge of approving RIL's margin money

business Updated: Sep 13, 2009 22:30 IST
Anil Ambani Group

Petroleum Ministry on Sunday refuted Anil Ambani Group firm RNRL's charge of approving of Reliance Industries levying marketing margin on gas sales, saying payment of any charge beyond the Government approved gas price was purely commercial arrangement between sellers and buyers.

"Our role is restricted to only to approving the price of gas at the landfall point and fixing its usage according to the Gas Utilisation Policy. Marketing margin if any are purely commercial arrangement between the seller and the buyer and we have nothing to do with it," a senior ministry official said.

RNRL had alleged that RIL was illegally levying a marketing margin on sale of gas from its eastern offshore KG-D6 fields.

"RNRL in their statement have themselves stated that Petroleum Ministry has categorically denied giving permission to RIL to charge any such marketing margin. If anyone or any buyer has grievance over the issue there are appropriate forums (like courts) to appeal," he said.

"RIL is not a public sector company that we administer so how can we stop them for entering into commercial contracts. It's for the consumers to do that."

"More than 35 companies have signed gas purchase contracts with RIL and none has stated that they are paying the marketing margin under protest. If they are aggrieved they can approach appropriate forum," he said.

"It has become fashionable to use Petroleum Ministry as punching bag. Please understand issues before making such charges," the official added.