8216;RIL need not pay royalty on marketing margin8217;

8220;The Production Sharing Contract under which firms like RIL produces oil and gas from areas given by the Government does not envisage sharing of revenue earned by the contractor RIL on the marketing margin between the government and the Contractor,8221; Deora told Rajya Sabha.

Under the PSC,the government has approved a price formula for sale of gas from KG basin D6 field at the delivery point the place where RIL transfer custody for sale to customer. The USD 4.20 per mmBtu is the price fixed for five years.

8220;The marketing margin is beyond the delivery point and arises as a result of Gas Sale and Purchase Agreement signed between the seller and the buyer,8221; Deora said in a written reply to a question by member Amar Singh.

8220;The PSC provides for sharing of revenue between the government and the contractor RIL of the sale of gas at the said price at the delivery point,8221; he said,adding that marketing margin was settled between buyer and seller and Government has neither decided nor approved the same.