CAG criticises flimsy GSPL response

Vol 19, PW 17 (05 May 16) News in Brief

Gujarat State Petronet Ltd (GSPL) is under fire from India's audit watchdog CAG for carrying out unauthorised re-routing work to its 45-km gas pipeline from Amboli village to Dahej.

In its Report Number-1 for 2016 submitted to the Gujarat government on March 31, CAG says GSPL awarded a Rs16.51cr ($2.5m) contract to Punj Lloyd to start re-routing work on 2.66-km of exposed pipeline at Dhanturia village in the Bharuch district following floods in the Narmada River in August 2013. In mid-2014, GSPL started work without permission from IndianOil, whose pipeline it crossed at three places in the river.

"This posed a grave threat due to the nature of the crossing," says the CAG report. IOC later refused the clearance and GSPL was forced to pay an additional Rs1.25cr ($188,000) to Punj to retrieve the pipeline, shift the rig to a new location, and drill a new hole.

GSPL said it did not wait for permission as it was an emergency and delays would affect its downstream customers. "GSPL's reply is not convincing," writes CAG.

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