NHAI, GAIL join forces to simplify infrastructure expansion process

Sign MoU to expedite crossing permissions, resolve disputes

State-owned GAIL India and the National Highway Authority of India (NHAI) have signed a memorandum of understanding (MoU) to simplify their infrastructure expansion works, as the country-wide networks of highways and gas pipelines often end up getting in each other’s way amid complex permission and transactional procedures.

The agreement between the highways authority and the public-sector undertaking (PSU), signed on August 3, is aimed at expediting crossing permissions, standardising financial procedures, and establishing dispute-resolution mechanisms, Business Standard has learnt. The agreement will be valid until 2026, and can be extended based on a mutual agreement between the two entities.

For easier crossing permissions and clearances, both NHAI and GAIL will be bound to issue no-objection certificates (NOC) within 60 days if one of them is building new assets over an area where the other entity already has projects.

Moreover, if no communication is made objecting to the proposed work within 60 days, the NOC will be deemed issued by default.

NHAI will also be expected not to levy charges on GAIL or its agencies for the laying of new natural gas, liquefied petroleum gas, and other hydrocarbon gas pipelines, which will be built along or across existing national highways. Similarly, GAIL will not charge NHAI for building new highways over its existing pipelines.

Under the agreement, NHAI, when working on expansion or new highways, will bear the cost of building protective portals or shifting gas pipelines if the pipelines have been laid before the official declaration of the highway.

Vice versa, if the pipelines were laid after the declaration of a highway stretch, the cost of such a work will be borne by GAIL. The company is also expected to obtain insurance cover from NHAI before allowing the construction of national highways over pipelines.

NHAI owns a national highway network of more than 144,000 km across the country. GAIL owns and operates a network of around 14,617 km of natural gas pipelines with a capacity of 206 mmscmd (million metric standard cubic metres per day) spread across 19 states and three Union Territories.

It is also working concurrently to increase the spread through multiple projects, such as the ~51,000 crore Urja Ganga Pipeline covering 2,540 km in Uttar Pradesh, Bihar, Jharkhand, West Bengal, and Odisha which will cater to millions of households.

GAIL’s LNG infrastructure is being strengthened to bring LNG from key ports in western India to the energy-starved eastern regions. The port of Dahej in Gujarat is the largest single-location LNG storage and regasification terminal in the country. Meanwhile, Odisha’s Dhamra port is being developed to handle 5 million tonnes of LNG annually.

As part of its drive to clean up bureaucratic delays, the Centre has been attempting to simplify approval processes between departments. Earlier this year, a similar proposal was mooted to facilitate smoother land transfer between NHAI and the Ministry of Railways.

(With inputs from Subhayan Chakraborty)

Clearing Bottlenecks

• Move to expedite crossing permissions, standardise financial procedures, and establish dispute- resolution mechanisms
• Both NHAI and GAIL to issue NOC within 60 days if one of them is building new assets over an overlapping area
• If no communication is made objecting the proposed works within 60 days, the NoC will be deemed issued by default