RIL margins to cost Rs 10k cr more on fert, power cos: RPower | business | Hindustan Times
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RIL margins to cost Rs 10k cr more on fert, power cos: RPower

business Updated: Sep 13, 2009 22:47 IST

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Anil Ambani group firm Reliance Power on Sunday alleged that Mukesh Ambani-led RIL was charging unauthorised margins on sale of gas to power and fertiliser units imposing an additional burden of Rs 10,000 crore on them and sought immediate intervention of the government.

"Reliance Industries Ltd is charging an illegal and unauthorised marketing margins of 13.5 cents (Rs 6.6) per million BTU on sale of gas from KG basin D6 fields...RIL's decision to levy this margin does not have the approval of the Empowered Group of Ministers," Reliance Power Chief Executive Officer JP Chalasani said in a statement.

While no comment could be obtained immediately from RIL, the allegations come amid the legal battle between the group firms of two brothers Anil and Mukesh over supply of gas to RNRL from RIL's Krishna-Godavari basin.

Dubbing the margins as "illegitimate and unjustified", Chalasani said these would result into an additional burden of Rs 10,000 crore on power and fertiliser consuming units.

"The major burden will be borne by government of India in the form of fertiliser subsidies and governments of Andhra Pradesh, Maharashtra and Gujarat in the form of power subsidies," he said.

The group firms of the two brothers have approached the Supreme Court on a Bombay High Court ruling, which upheld that the Anil Ambani group company RNRL would get gas at $ 2.31 per mmBtu, 44 per cent lower than the price fixed by the government. The apex court will commence hearing on October 20.