This story is from September 26, 2009

Rel Infra to switch off Samalkot unit

Anil Ambani's Reliance Infra is switching off its Samalkot power plant in Andhra Pradesh for 35 days for maintenance.
Rel Infra to switch off Samalkot unit
NEW DELHI: Anil Ambani's Reliance Infra is switching off its Samalkot power plant in Andhra Pradesh for 35 days for maintenance. The news comes a day after Mukesh Ambani's RIL on Thursday said it had slapped notice to stop gas supplies for alleged ������default'' of payment due on account of marketing margin,
An Anil group spokesperson said the shutdown, slated from September 20, was planned in April and the state government had been informed accordingly.
The shutdown was, however, deferred by a week on the state government's request and a further adjustment of one day was made for experts who were arriving from Italy.
Power plants can't recover their ���fixed' charges if they have to switch off due to non-availability of gas. They can get these charges for the period of maintenance shutdown. Sources said RIL may implement its notice and shut off gas supplies to Reliance Infra by the weekend.
Reliance Infra sent a letter to RIL on September 24 regarding the shutdown. On the same day, it had also challenged the RIL notice and described it as ������malafide''. Reliance Infra, which till last month was paying the 13 cents as marketing margin on per unit of gas, refused to pay the amount due for first half of September saying such a levy was ������unauthorised and illegal''.
Reliance Infra also buys gas from state-run gas utility GAIL for the Samalkot plant for which the state-run firm would also charge marketing margin.
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