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Reliance Industries is reported to have resolved almost all issues with fertiliser firms and is set to start natural gas supplies from the company's KG-D6 fields in the east coast of India once the agreements with the respective companies are signed. Ffertiliser firms are first in line to receive natural gas supplies from the Mukesh Ambani-run KG-D6 fields as per the government's priority list. The Fertiliser Association of India had sent a letter to the government seeking clarifications on the 'take or pay' clause the gas sales-purchase agreement (GSPA) with Reliance Industries Ltd. Twelve fertiliser companies have received GSPAs from RIL, apart from Ratnagiri Gas and Power. The standard agreement says that if a client who offers to buy and doesn't offtake the gas will still have to pay. The fertiliser units will have to pay for a minimum 90 per cent of the volumes allocated to them in a year even though they may not draw even one per cent of the gas supply. The GSPAs are being sent to nine fertiliser units this week for possible signing along with the gas transportation agreements. The companies, however, can defer offtake of gas supplies to the subsequent year in a five-year contract. The contract may be extended by another three months to enable companies to draw their quotas and if that period is insufficient, Reliance will refund money for remaining volumes. Reliance, however, has no marketing freedom to sell the fuel as it wants.
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