PNGRB pipeline warning to Gujarat Petronet

Vol 18, PW 26 (27 Aug 15) People & Policy

In its home state Gujarat State Petronet (GSPL) is expanding fast but look elsewhere in India and it's another story.

Unofficially, GSPL's much-delayed tender to lay three cross-country gas pipelines stands cancelled. In May last year (2014) it received bids from L&T, Kalpataru, Essar Projects, Punj Lloyd, KazStroy, and Fernas, then planned to open price bids in May 2015, extended to August 26.

“If the PNGRB gives us a two-year extension," says a source, "we might re-issue the tender." This seems unlikely - the PNGRB is unhappy with GSPL.

On August 11 it met senior GSPL officials and demanded a reply by the first week of September on why the company hasn’t begun laying pipelines awarded four years ago? And a final date by when it will complete work? “We can’t keep endlessly waiting for them to lay the pipelines,” says a PNGRB source. In its defence GSPL, which was meant to complete the projects by July 2014, says it still awaits forest clearance from Maharashtra and Telangana for the 1881-km Mallavaram to Bhilwara pipeline and is struggling with RoU permission in Haryana for the 670-km Mehsana to Bhatinda pipeline.

At least in J&K the government is helping secure the RoU for the Bhatinda to Jammu pipeline. GSPL applied for a two-year PNGRB extension six months ago but still awaits a response.

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