New Delhi, September 27: In the face of opposition from the Power Ministry and an Anil Ambani group firm on the marketing margins charged, Reliance Industries has justified the levy saying it was essential to cover risks and costs incurred in marketing of gas.
“The marketing margin being charged by RIL on sale of KG-D6 gas is fair and justified consideration for the risks and costs undertaken in the GSPA including such risks and costs beyond the delivery point,” RIL president (Gas Business) wrote to Power Secretary H S Brahma.
Brahma had on September 25 questioned the levy as RIL being an integrated producer and marketer of gas while NTPC asked his ministry to seek a specific confirmation for the levy from the government.
Terming as illegal the market margin, Anil Ambani group firm Reliance Infra had refused to pay the levy prompting RIL to issue a notice for suspension of fuel supply for “default”. NTPC has sought to know whether the margins levied by RIL had government’s approval.
RIL said the USD 0.135 per mmBtu marketing margin over and above the price was to cover risks like sellers liabilities in case of non-supply, customers drawing less than their quota, non-payment of dues and settlement of disputes and claims on quality, quantity or terms of the GSPA.
–Agencies