Indian Petrochemicals Corp Ltd (IPCL), a Reliance group company, has approached the petroleum ministry against the supply termination notice served by the gas transportation firm GAIL India Ltd. GAIL had served a notice to terminate gas supplies to IPCL unless it cleared Rs 64.02 lakh outstanding towards marketing margin on February 9.
IPCL challenges the charge made by GAIL for marketing margin on the Government-controlled gas it sold to industries. GAIL had demanded a marketing margin of Rs 222 per thousand cubic metres on the Government administered or APM gas which it was supplying to IPCL's plants at Baroda, Gandhar (Gujarat) and Nagathone (Maharashtra).
IPCL has not signed the revised gas supply agreement with GAIL after the Government pricing order which came into effect from July 1, 2005. IPCL has contended that despite requests GAIL had not been able to furnish Government orders mandating it to collect marketing margin and had 'unfairly' issued the termination notice.
23-Feb-06 
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