ril's illegal levy

Reliance Industries is increasingly getting boxed in. Between NTPC and RNRL's pincer moves, RIL has no room to manoeuvre. Its only fall back being that the cases are pending in SC. NTPC's devastating critique of RIL's malafide intent in not providing gas despite having signed a gas supply agreement has now been followed up by RNRL's attck on RIL charging unauthorised marketing margins.

This is resulting in a potential loss of Rs 10,000 crore to the government in the form of subsidies to power and fertiliser firms. RNRL latest charge is,"RIL's illegal levy of marketing margin is a double whammy. On the one hand the government is denied its lawful share of the additional sales realisation generated by RIL through this levy; and on the other hand the government also has to eventually pay for this additional burden in the form of enhanced subsidy for the fertiliser and power sectors. A shocking case of illegal transfer of over Rs 10,000 crore from government coffers to RIL."

RIL is charging unauthorised marketing margin of 13.5 cents (Rs 6.6) per million unit on the sale of D6 block in KG Basin. The government meanwhile is moving towards protecting its interests in KG Basin gas by giving priority to state owned petrochemical plants and refineries over RIL's downstream facilities. RIL has demanded 20 million units of gas for captive requirement. The government will consider RIL's request only when the allocation of next 40 million units per day is considered.