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...while RIl says it breaks notice rule

Accusing Reliance Infrastructure of not adhering to a contractual 60-day notice period to announce a maintenance shutdown at its Andhra Pradesh power plant, RIL has said it would nevertheless supply gas to the plant “despite the payment default” — which is also an issue at stake.

business Updated: Sep 28, 2009 20:50 IST
HT Correspondent

Accusing Reliance Infrastructure of not adhering to a contractual 60-day notice period to announce a maintenance shutdown at its Andhra Pradesh power plant, RIL has said it would nevertheless supply gas to the plant “despite the payment default” — which is also an issue at stake.

“As an exception, we agree to a change in planned maintenance by one day (to Sept 28),..” RIL’s marketing head R. Suresh told Reliance Infra in a letter dated Sept 25, saying there was “no obligation” to supply gas.

Reliance Infra on Sept 24 informed RIL of postponing the planned maintenance shutdown from Sept 27 by one day.

RIL’s letter comes within days of its notice to suspend gas supplies to it for “default” in payment. RIL officials did not elaborate on as to when the notice for shutting the gas pipe would come into force if the margin was not paid.

RIL slapped a notice on Reliance Infra for not paying an estimated Rs 12 lakh in the first fortnight of September before invoking a bank guarantee to realise the amount.