RIL underpaying government, says Reliance Infra

Following on the heels of a letter written by Mukesh Ambani's Reliance Industries Ltd to power secretary H S Brahma justifying the levy of a marketing margin on its Krishna-Godavari gas, Anil Ambani's Reliance Infrastructure yesterday riposted with a letter to the oil ministry alleging that RIL was not sharing the revenue from this with the government, thus ''diverting'' crores of rupees of the government's share.

In a letter to petroleum secretary R S Pandey, Rel Infra also wanted to know whether RIL was entitled to charge the marketing margin despite the fact that ''RIL is not sharing this part of sales consideration with the government."

Demanding an early resolution to the issue whether RIL was justified in charging marketing margin, the Reliance Infra letter said, ''You are requested to advise RIL to act in terms of the Bombay High Court order … RIL has not undertaken any marketing and the said charge is essentially a part of sales consideration which is not shared with the government. Hence, RIL is not authorised to charge the same.''

On Saturday, RIL had written to Brahma seeking to justify the levy, saying it was essential to cover risks and costs incurred in marketing 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 gas purchase and sale agreement, including such risks and costs beyond the delivery point," RIL said.

Meanwhile, with Reliance Infrastructure's Andhra Pradesh shutting down for maintenance for 35 days on Monday, RIL said it would continue supplying gas from its offshore block till then, despite the payment default.