IGL accused of overcharging Adani and Haryana

Vol 19, PW 22 (14 Jul 16) People & Policy

Indraprastha Gas stands accused of unfairly exploiting a Supreme Court order from 2008 by forcing Adani and Haryana City Gas to unnecessarily pay up to Rs12cr/year ($2m) each.

Both Adani and Haryana Gas officials tell this report they made separate representations to oil ministry joint secretary Ashutosh Jindal last month (June) and have also asked the PNGRB to intervene. But alas, to no avail.

An Adani source explains that in April 2008 the Supreme Court directed the oil ministry to allocate 250,000 cm/d for Faridabad to Adani and a similar amount for Gurgaon to Haryana Gas. Until then IGL was taking 500,000 cm/d from GAIL but the court said it should instead supply the gas to Adani and Haryana Gas.

What has happened since then? GAIL has been supplying the gas directly to the two companies and raising invoices. But on top of that IGL has been raising invoices for Rs187/scm as gas supply charges.

Adani and Haryana Gas cannot understand the logic of this as IGL is not involved in any way in supplying the gas. Of the 250,000 cm/d allocated to Adani, it draws between 160,000 cm/d and 175,000 cm/d.

"On average, we're paying Rs3 lakh/day ($5000) to IGL," adds Adani. "The amount is payable along with GAIL's invoice sent to us every fortnight.

Over the last five years, we've paid over Rs60cr ($10m)."