Supreme Court clears Gail’s pipeline in Tamil Nadu

In a big boost to Gail India’s ambitions pipeline project in southern India, Supreme Court has cleared the deck for the ambitious 310 km pipeline project from Kochi to Mangalore connecting Kottanad and Bangalore. The Apex Court quashed Tamil Nadu government’s notification of restraining Gail from laying natural gas pipelines passing through farm lands from six districts of Tamil Nadu. State government wanted that Gail would lay pipeline along national highways in place of farmland.

The Supreme Court bench comprising chief justice T.S. Thakur, justices A.K. Sikri and R. Banumathi asked,  “how a state government could intervene in a contract between the central government and Gail.” Court also ordered the, “state government will determine the modalities of the compensation to be given to farmers. The court has allowed enhanced compensation of 30%, which is over and above the statutory compensation of 10% of the market value of the project.”

This is a significant development for Gail as its pipeline project is stuck for last many years crippling its operation as company has already invested huge amount of money into the projects. Also huge investments have been made by other companies like Petronet LNG in south India for LNG terminal in Kochi and lying idle for many years in absence of this pipeline to transport the gas. Gail in its statement seems satisfied with the ruling. “The ruling passed today by the Hon’ble Supreme Court on GAIL (India) Limited’s Kochi-Kottanad-Bangalore-Mangalore Pipeline project is a heartening development. GAIL accepts it with humility and will work in close coordination with the Government of Tamil Nadu to restart the pipeline laying work of the 310 km long stretch passing through the state of Tamil Nadu,” company said in a statement. “GAIL will continue to work closely with the Government and people of State of Tamil Nadu to execute this project in a time-bound manner. On completion, the project will provide access to modern and clean fuel critical for economic growth and quality of living for citizens in the state,” company added.