he Rs 3,000-crore LNG pipeline project by GAIL received a fillip with the Madras High Court quashing a Tamil Nadu Government order which stalled the project.
Work on the 1,146-km Kochi-Kuttanad-Bangalore-Mangalore gas pipeline project, which traverses about 300 km in Tamil Nadu, was stalled following farmers’ protests.
The State Government supported the farmers and in an order on April 2, directed GAIL to stop laying the pipeline through fields and change the alignment along the highways. GAIL filed a writ petition on April 25 challenging the order on the grounds that it violated the Constitution and Union Government laws relating to petroleum, minerals and National Highways.
The Madras High Court, while quashing the State Government order, said the project is in public interest and the Government should facilitate the project in national interest.
Project Impact
The State Government had initially supported the project and GAIL had obtained the requisite clearances and agreed to compensate the farmers.
The project traverses seven districts in Tamil Nadu – Coimbatore, Erode, Tirupur, Namakkal, Salem, Dharmapuri and Krishnagiri – and will supply over 9 mmscd of gas. City gas distribution for households is also envisaged. Tamil Nadu will earn over Rs 400 crore in sales tax annually, according to GAIL.
Our Delhi Bureau adds
Reacting to the judgment, GAIL (India) Chairman and Managing Director B.C. Tripathi said it has come as per the provision of the Petroleum and Minerals Pipeline Act 1962. “We will go back to the Tamil Nadu Government and talk to them. With their support and collaboration, we hope to start the pipeline project soon to the satisfaction of all the stakeholders.
“We have awarded contracts for the 1,000-km pipeline. Ten sections of the pipeline work has been given to different parties. In some of the places, 10-20 per cent work has been done. But, in some places work has been completely stopped. These are almost one-and-half year contract. So, we will have to see how quickly we can start that,” he said.