GAIL (India) Ltd is locked in a dispute with the Tamil Nadu Government over a proposed 310-km-long natural gas pipeline that will pass through seven districts in the state. The gas distributor says the objections of locals are “bogeys” aimed at disrupting the project. In a conversation with Business Line,B.C. Tripathi, Chairman and Managing Director of GAIL , said that commercial decisions should not be politicised. Edited excerpts:

GAIL has contended in the Madras High Court that the Tamil Nadu Government’s order on the pipeline usurps the authority of the Centre. How do you justify this?

Since the matter is sub-judice, I would not like to comment much. On the commercial front, let me clarify, the networks are laid based on the Petroleum & Minerals Pipeline (Acquisition of Right of User in Land) Act. The Act is uniformly applicable across the country.

State governments are involved in the projects from the beginning. Based on these permissions, we sign a memorandum of understanding with the State. State governments are required to provide us right of user.

What is the remedy?

We will have to see how one goes about issues when Central agencies and States are involved. At present, courts are the place. But, the best remedy is to discuss and sort out the issues. We should understand each other’s concerns and solve them. The concerns should be genuine. If the pipeline is not safe for farmers, how can it be safe along the highways?

Why is it not possible to lay it along the highways?

Network along the highways is not possible due to numerous technical reasons: safety, security, maintenance of pipelines, non-availability of space, movement of heavy construction equipment and disruption of highways. Nowhere in the world is it done along the highways.

Laying a 24-inch pipeline will result in it bearing stress due to vehicular movement, which is not advisable from the safety angle, as the pipeline will have to be practically laid beneath the Highway.

The entire highway will be obstructed and traffic will be at a standstill during pipe-laying work, which is not permitted by both NHAI (from an operational point of view) and State administration (from a law and order point of view).

Pipeline routes are selected in such a way as to ensure they pass through various demand centres. The Kochi–Coimbatore–Salem–Bangalore route was also chosen on similar lines.

If the route is changed, not only will this have huge implications on the project cost and schedule, it will also require acquiring additional right of use or RoU, predominantly in agricultural land.

Agricultural activities will not get disturbed after laying the pipeline. Further, crop losses during construction are adequately compensated. Besides, we have to follow the design code spelled out by the Petroleum & Natural Gas Regulatory Board.

GAIL has laid a network along the highway in Kerala. Why can’t the same be done in Tamil Nadu?

In Kerala, one stretch of 12 km was laid to bring out gas from Puthuvypeen Island, which is surrounded by water bodies. The only way possible was to lay a pipeline along the National Highway being constructed in the reclaimed area. Besides, no agricultural land was available in that portion and laying of the pipeline was carried out prior to construction of the highway.

What about environmental concerns?

Pipelines are the most environmental friendly mode of transport whether for oil, water or gas. They are also the most economical.

When we are laying the gas pipeline, we are acquiring a small strip of 30 metres, in Tamil Nadu, which we have reduced to 20 metres on their demand. We also avoid, to the extent possible, reserve forests and wildlife.

Farmers say they stand to lose. What kind of compensation is GAIL giving?

There is no harm to agricultural activities due to the presence of a pipeline. The pipeline is one or two metres below the ground level. The full crop and land compensation is given as per the P&MP Act. The State Government has already formed a high-powered committee to look into issues related to execution of GAIL’s pipeline in Tamil Nadu.

RoU is not a permanent land acquisition. Compensation is paid for land at the rate of 10 per cent, according to the Act. The land value is decided by the competent authority (set up by State governments) or as directed by the Government. Also, crop compensation as per the respective department’s valuation is being paid.

The compensation for this project, to be paid to farmers whose lands were being used to lay the network, based on the formula worked out by the State Revenue Department, is much higher than the value of the land.

Did GAIL speak to the State Government and farmers before deciding on the route?

The route of the pipeline is based on the optimal route between the source and destination/demand centres for the gas.

Populated areas are avoided and the route goes predominantly over agricultural land. The cost of laying the pipeline is the least, as ultimately, it is public money being used.

A detailed route survey is carried out, a Gazette notification is published by the Government of India, and public hearings take place wherein any objection can be raised by landowners. Hence, it is not correct to say that the consent of farmers was not taken.

There is also a concern that farmers through whose land the network passes will be accountable for any damage. Is this true?

In 2012, an amendment to the P&MP Act was passed by the Government, with the objective of preventing pilferage/sabotage of pipelines by anti-social elements. Pilferage is highly improbable as the pipeline operates at high pressure. It may also be noted that no single complaint has been registered by GAIL till date as per the Amendment, and hence, any misunderstanding due to this may be eliminated.

>richa.mishra@thehindu.co.in

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