RIL to give gas to ADAG power plant till maintenance shutdown | business | Hindustan Times
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RIL to give gas to ADAG power plant till maintenance shutdown

business Updated: Sep 28, 2009 14:03 IST

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Accusing Anil Ambani group firm Reliance Infra of faulting the contractual notice period for maintenance shutdown at its power plant, Mukesh-led RIL has decided to give gas till on Monday despite the payment default.

"Under the terms of the GSPA, a change in the schedule of planned maintenance needs a 60-day prior notice. As an exception, we agree to change in planned maintenance by one day (to September 28) even though such notice was not given to us in accordance with the provisions of the GSPA," RIL's Marketing Head R Suresh has informed Reliance Infrastructure.

The reprieve to Reliance Infra's power plant in Andhra Pradesh, which is closing down for 35 days from today for annual maintenance, comes within days of RIL issuing a notice to suspend the gas to it for "default" in payment. "Whereas we have no obligation to continue to supply any gas to you in view of your continuing default... we will continue to supply gas to your plant in view of the imminent planned maintenance," Reliance Industries told R-Infra in a letter dated September 25.

RIL officials did not elaborate on as to when the notice for shutting the gas pipe would come in force in case Anil Ambani group firm did not agree to pay the marketing margin. Terming the marketing margin on gas charged by RIL as "illegal", Reliance Infra had refused to pay the same prompting Mukesh Ambani group company to put it on notice for nonpayment of an estimated Rs 12 lakh for the first fortnight of September before invoking bank guarantee to realise the amount.