Anil wants EGoM to discuss margin
The Anil Ambani controlled Reliance Infrastructure Ltd has sought intervention of the empowered group of ministers (EGoM) for directing Mukesh Ambani’s RIL to stop charging marketing margins from all customers of the KG-D6 gas, reports HT Correspondent.business Updated: Oct 25, 2009 23:24 IST
The Anil Ambani controlled Reliance Infrastructure Ltd (R-Infra) has sought intervention of the empowered group of ministers (EGoM) for directing Mukesh Ambani’s Reliance Industries Ltd (RIL) to stop charging marketing margins from all customers of the KG-D6 gas.
“We would request you to take up the above issue of marketing margin at the forthcoming meeting of the EGoM,” said the CEO, Reliance Infrastructure Ltd, Lalit Jalan, in his October 23 letter to Power Minister Sushil Kumar Shinde.
“RIL should be directed to immediately put a stop to this illegitimate levy of marketing margin from all customers of KG Basin gas and refund the marketing margin wrongfully collected so far.”
Reacting to R-Infra charges, RIL said, “RIL denies any allegation that the marketing margin charged by it are in violation of the EGoM/government of India decisions.”
“The marketing margin being charged by RIL on sale of KGD6 gas is for the risks & costs beyond the delivery point and is in line with general industry practice.”
While objecting to the levy of marketing margin by RIL, R-Infra further told Shinde that the levy of this charge is “in stark defiance of the decision of EGoM taken on September 12, 2007.”
“RIL is currently charging a marketing margin of 13.5 cents per unit in addition to the base price of $4.2 per unit. RIL has included Marketing Margin as part of Sale Price in the GSPAs signed with us and other power companies.”
To this, RIL said, “The quantum of marketing margin has been agreed to in the gas sales purchase agreements (GSPAs) signed between RIL and over forty customers in the fertilizer, power, steel, LPG and CGD sectors.”
The recently reconstituted EGoM on gas pricing and its commercial utilisation, headed by Finance Minister Pranab Mukherjee is scheduled to hold its first meeting on October 27, for considering the additional allocation of gas from RIL’s KG-D6 block.