RIL notice to R-Infra for default gas payment

Reliance Industries (RIL) has issued notice to suspend gas supply to Reliance Infrastructure (R-Infra) for 'default' payment, within days of Anil Dhirubhai Ambani Group (ADAG) entity saying it would not pay 'illegal' marketing margins to Mukesh-led firm. On September 22, 2009, RIL has issued a notice to R-Infra for suspension of supply of gas to its power plant in East Godavari, Andhra Pradesh...The notice has been issued in accordance with the terms of Gas Sale and Purchase Agreement (GSPA).     

R-Infra has been getting the gas from RIL for its power plant in Andhra Pradesh for last five months at a price of $4.2 per mmBtu and marketing margin of 0.13 per mmBtu. Earlier in its letter, R-Infra had told RIL that their gas supply agreement was not a result of any marketing undertaken by RIL or any agency and since there has been a complete absence of any marketing, the charge in respect of marketing margin is clearly unwarranted.crackcrack