Reliance Industries Ltd., India’s most valuable company, issued a notice to suspend gas supplies to Reliance Infrastructure Ltd for defaulting on payments. The notice, issued on Sept. 22, is for gas supplies from the KG-D6 field off the nation’s east coast to Reliance Infrastructure’s power plant in Andhra Pradesh state, Reliance Industries said in an e-mailed statement today.

Anil Ambani, chairman of Reliance Infrastructure, wants to enforce a 2005 agreement requiring Reliance Industries to supply natural gas from the KG-D6 field to a plant in Uttar Pradesh state in northern India at 44 percent cheaper than a government- approved price. The Supreme Court is scheduled to start final hearings in the four-year-old row from Oct. 20.

Reliance Infrastructure is paying the government-approved price of $4.2 per million British thermal units, the company said in a Sept. 24 letter to Reliance Industries that was made available to Bloomberg News. The company is not paying marketing margins, which is “illegal and unauthorized,” according to the letter.

Reliance Industries was little changed at 2,100.95 rupees in Mumbai trading today compared with a 0.1 percent decline in Reliance Infrastructure. The benchmark Sensitive Index of the Bombay Stock Exchange gained 0.4 percent.

Reliance Industries, run by India’s richest billionaire Mukesh Ambani, signed an agreement with Reliance Infrastructure for supply gas to a plant in the southern state of Andhra Pradesh on April 28.

India designated fuel-starved power producers and fertilizer-makers as priority customers for the gas to be produced from Reliance’s Krishna-Godavari field, which is expected to more than double the country’s output of the fuel. Production, which started in April, may double the South Asian nation’s supply of the fuel when its reaches a peak rate of 80 million cubic meters a day, according to R.S. Pandey, the government’s oil secretary.

It seems that ADA Group does not want to comply with contractual agreement which was singed ADA Group. After bashing Indian Government recently ADA Group trying to take rules and regulations of the country under its control. The Group intentions are not very clear.

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