RIL debunks R-infra charges on mkting margins on gas sale

The statement followed Anil Ambani Group firm Reliance-Infrastructure writing to Power Minister Sushilkumar Shinde requesting him to take up the issue of RIL charing ‘llegal’marketing margin at the meeting of the Empowered Group of Ministers (EGOM) on Tuesday.

“The quantum of marketing margin has been agreed to in the Gas Sales and Purchase Agreements (GSPAs) signed between RIL and over 40 customers in the fertilizer,power,steel,LPG and city gas sectors,” RIL said.

Under the Production Sharing Contract (PSC) signed with the government for KG-D6,pursuant to an application by RIL,the Government has approved a price formula for sale of gas at the delivery point under the PSC.

“While the risks and costs of the E&P operations are covered under the PSC,the risks and costs incurred in marketing of gas have been explicitly excluded from the purview of the PSC,” RIL said.