Green light for Gujarat gas grid as governor signs ordinance

Vol 4, PW 24 (17 Jan 01) News in Brief

Gujarat governor Sunder Singh Bhandari has bowed to pressure and signed a controversial ordinance, paving the way for construction of a 1,507-km gas grid.

We earlier reported that Bhandari refused to sign the ordinance on advice from Delhi. It now emerges he did sign on 19th December (the day we publish) following talks with the state energy minister Kaushik Patel.

Gujarat authorities have set a deadline of 19th January for companies that want an equity stake in the grid. This report understands Gujarat has refused an application by Shell, British Gas and Gaz de France to acquire more than 11% in the project.

An application by Indian Oil has also been rejected.

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