GAIL scraps pipe-laying contract with debt-ridden IL&FS
GAIL offloaded the pipe-laying contract from IL&FS due to poor project progress on account of acute financial crisis
PSU Watch Bureau
February 06, 2019
New Delhi: With a view to safeguard the project schedule of the Pradhan Mantri Urja Ganga natural gas pipeline to eastern states, Gas Authority of India Limited (GAIL) as the owner and operator of the prestigious project under execution has offloaded the pipe-laying contract from IL&FS due to poor project progress on account of acute financial crisis, an official statement released by GAIL said.
3 contractors put on the job; MECON replaces EIL
The Bokaro-Durgapur section (124 kms) is now re-tendered and awarded to three different contractors to expedite construction for hooking up supply network to the fertilizer industry, city gas distribution network and other industrial consumers. Meanwhile, in a separate decision taken earlier, state-owned project consultant, Engineers India Limited was replaced by MECON for overseeing the project activities under this crucial stretch.
Gas supply expected to commence soon
Post-commencement of supplies at Varanasi, the final leg of Phase-I (Phulpur-Patna section of approximately 585 Km length) of the 2,660-km pipeline project is now closer to readiness and natural gas supply to Bihar’s capital Patna is expected to commence during the second fortnight of this month. BC Tripathi, Chairman and Managing Director, GAIL, re-affirmed the company’s commitment to ensure the completion of Pradhan Mantri Urja Ganga project, strictly within the envisaged project schedule. Accordingly, Phase 2 of this project beyond Dobhi (Gaya) towards Durgapur-Haldia and Bokaro-Ranchi-Angul-Dhamra (1,900 Km) is slated for progressive completion by December 2020 whereas the 750-km pipeline from Barauni to Guwahati is expected to be operational by December 2021.