Gail seeks stay on TN govt's decision to halt Rs 3,000 cr project

Moves Madras High Court after TN govt stops pipeline project following protests by farmers

Gail has knocked on the doors of Madras High Court to get an interim stay on Tamil Nadu government’s decision to stall the Rs 3,000 crore pipeline project, which was to connect the state of Kerala with Karnataka via Tamil Nadu.

The Madras High Court has admitted the case and given notice to the authorities concerned - Government of Tamil Nadu, Principle Secretaries of various related departments and seven district collectors in Tamil Nadu.

It may be noted that on 2 April the state government has asked Gail not to proceed with its pipeline work in the seven districts of Tamil Nadu, after farmers in these districts went on agitations, which turned violent in certain places. The farmers have alleged that Gail has taken their land illegally and they were not compensated at the market price.

The Kochi-Kootanad-Mangalore- Bangalore pipeline project was projected to transport and distribute Re-gasified Liquefied Natural Gas. About 310 km long section of this pipeline was to pass through Coimbatore, Tirupur, Salem, Erode, Namakkal, Dharmapuri and Krishnagiri districts in Tamil Nadu.

Of the Rs 3,000 crore, Gail already invested Rs 650 crore in the project.

Responding to State Government’s decision, the Chairman and Managing Director of Gail submitted a representation to the Chief Minister of Tamil Nadu requesting her to re-consider the State Government’s decision and allow the company to resume gas pipeline construction in the state.

The District Collectors of Salem and Dharmapuri districts have already taken steps to remove the pipes already laid and sent compliance report.

In this circumstance, Gail knocked on the doors of the Court, seeking for an interim order.

In the petition, copy of which is available with Business Standard, Gail has argued that the state Government has no power or jurisdiction under any law to take such decision, particularly departing from their earlier decision dated December 5, 2012.

Gail also stated that the state government’s decision is contrary to and in violation of the provisions of Petroleum and Mineral Pipelines (Acquisition of Right of User in Land) Act 1962 and the Rules made there under and Petroleum and Natural Gas Regulatory Board 2006.

The company also stated that the Collectors decision to remove the pipes, which are already laid, is illegal and contrary to federal structure of the State. Gail added that State has no legislative competency to take such decision and there is no provision and rules for the State Government to stall the onging public project.