Gas pipeline not scrapped, says GAIL officials

COIMBATORE: The officials of Gas Authority of India Limited (GAIL) have specifically stated that as of now only the pipe laying contracts awarded to a Maharashtra based private firm has been cancelled and there was no official decision to scrap the project.
Strong rumours were spread among the agrarian community claiming that the GAIL project has been cancelled after some television channels started running a scroll that the GAIL contract has been cancelled.However GAIL officials clearly stated that only the particular contract awarded for Tamil Nadu has been cancelled and a fresh contract would be awarded after calling tender based on the Supreme Court ruling expected to come in July. They also added that the Rs3400 project work is progressing as per schedule in both Kerala and Karnataka.
"We have not taken any decision to wind up the project. There is no problem in Kerala and Karnataka. We are waiting for the court verdict and will act accordingly," said Jyoti Kumar, senior manager, corporate communications, GAIL when contacted.
According to GAIL officials, the supply contract awarded to Maharasthra based Fabtech firm was cancelled a few days ago due to prolonged delay after the state government opposed the project when farmers in western Tamil Nadu registered strong resistance.
According to GAIL officials, the Rs210cr contract was awarded in 2012 with a time frame to complete the work within a year.
"The project was cancelled as the work was stalled and the procured pipelines and other components were lying idle and the contractor could also seek damages from GAIL for the inordinate delay. So we decided to cancel the contract for Tamil Nadu alone," said a southern region executive of GAIL.
Meanwhile, P Kandasamy, General Secretary of Farmers Association (Non Political) also pointed out that the confusion was due to the news scroll in some television channels citing that the GAIL contract has been terminated. Farmers association (Non Political) was one of the agrarian associations that strongly protested the project and also demanded the Petroleum and Minerals Pipelines (PMP) Act to be repealed at the earliest.
"It refers just to the supply contract and not the complete project. We have been strongly opposing the project from the beginning and are now waiting for the SC verdict. The PMP Act is the main cause of worry and no government has acted so far to get that repealed," said Kandasamy.