NTPC echoes Anil Ambani, opposes marketing margins in RIL gas sale | business | Hindustan Times
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NTPC echoes Anil Ambani, opposes marketing margins in RIL gas sale

State-owned NTPC Ltd has joined forces the Anil Ambani controlled Reliance Infrastructure in objecting to marketing margins being levied by Mukesh Ambani’s Reliance Industries (RIL) on sale of KG-D6 gas to the core sector.

business Updated: Sep 25, 2009 23:46 IST
HT Correspondent

State-owned NTPC Ltd has joined forces the Anil Ambani controlled Reliance Infrastructure in objecting to marketing margins being levied by Mukesh Ambani’s Reliance Industries (RIL) on sale of KG-D6 gas to the core sector.

Confirming the move, power secretary HS Brahma said his ministry has already taken up the issue of “marketing margins” raised by NTPC with the ministry of petroleum and natural gas.

“Normally, marketing margins are (paid) where there is a whole-seller, a distributor (and) a retailer. But in this case of gas company (RIL), there is no whole-seller or retailer. It is a one-man show, one company is doing that," Brahma told reporters on the sidelines of a press meet.

The comments from the power ministry assume significance as they have come a day after RIL said that it has slapped notice to suspend gas supply to the power plant of Reliance Infra in Andhra Pradesh for payment default.

NTPC has agreed to pay the margin but wrote to the power ministry to take up this issue with the appropriate authority.

RIL’s spokesperson refused to offer any comments. On its part, Reliance Infra has told RIL that it will only pay the government approved price of $4.2 per unit and not the $0.13 per unit being charged as marketing margins by RIL.