Reliance moves a step closer to building gas pipelines

Vol 8, PW 14 (06 Oct 04) News in Brief

Reliance has cleared another major hurdle in its ambition to build two gas transmission pipelines across India.

By 28th September no one had responded with an Expression of Interest for 25% capacity in its proposed 1509-km gas pipeline from Kakinada in Andhra Pradesh to Uran in Maharashtra and then on to Ahmedabad in Gujarat; or in its proposed 664-km gas pipeline from Hyderabad to Goa. Reliance has asked for permission to lay both pipelines designed to transmit KG gas to northern and western India - and on 1st October made a detailed presentation to ministry officials.

Many believe Reliance deliberately laid down stringent conditions such as take-or-pay contract and identification of gas sources and customers to discourage any Expression of Interest. Reliances ambition to construct gas transmission pipelines is a direct challenge to GAIL, which claims the right to be Indias gas transmission monopoly.