The Ambani brothers are again caught in a controversy over gas supply from the Krishna-Godavari basin, with Mukesh Ambani-owned Reliance Industries Ltd (RIL) threatening to stop gas supply to Andhra power plant operated by Anil’s Reliance Infrastructure, in case the latter fails to clear its pending dues for the first fortnight of September.

Reliance Industries (RIL) said, “The notice has been issued due to default committed by Reliance Infrastructure in payment of the amounts due, under the invoice for gas supplied during the first fortnight of September 2009.”

Reliance Infrastructure’s 220 Mw Samalkot power plants in the East Godavari region had got 0.52 mscmd of gas on a fall-back basis at a price of $4.2 per million British thermal unit, under a Gas Sale and Purchase Agreement (GSPA) on April 27.

Reliance Infra earlier this month wrote a letter to RIL and conveyed its displeasure over $0.135 per million British thermal unit marketing margins claimed by RIL, adding that it would not pay any such illegal and unwarranted margin.

Reliance Infrastructure informed RIL: “Until this bonafide and genuine dispute with regard to legality of marketing margin is resolved, you are not entitled to suspend the operation of the GSPA (gas sales purchase agreement) or disrupt supplies.”