Rel ready to offer market value for land use

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New Delhi, May 9: Mukesh Ambani-led Reliance Gas Transportation and Infrastructure Company on Friday informed the Supreme Court that it was ready to compensate farmers at market rate for right to use land for laying a pipeline to transport natural gas from Krishna-Godavari basin to Gujarat.

The company had approached the apex court in March challenging the Andhra Pradesh High Court's order that stalled the construction of the pipeline.

A bench headed by Justice B N Agrawal adjourned the matter after Reliance counsel Harish Salve made the statement that the company was ready to settle the matter with the farmers and was ready to offer them market value.

"The company will start pumping of gas in July and we have offered them the market value. After negotiations, the High Court will hear the matter," he said.

The High Court had on November 13 2007 ordered for stalling the pipeline work after some farmers from the state challenged the provisions of the Petroleum and Mineral, Pipelines (Acquisition of Right of User in Land) Act, 1962.

In separate petitions filed before the High Court the farmers had alleged that Reliance Gas Transportation and Infrastructure and Reliance Industries were building the pipeline illegally through their lands.

The petitioners had sought setting aside of the provisions of the Petroleum and Mineral, Pipelines (Acquisition of Right of User in Land) Act, 1962 on the ground that it was illegal and unconstitutional, besides seeking nullification of the notification issued by the government for laying of the pipes through their lands.