Gujarat State Petroleum Corporation files contempt of court petition against GAIL

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State-run Gujarat State Petroleum Corporation (GSPC) has filed a contempt petition against GAIL for not complying with the orders of the Gujarat High Court. State-run Gujarat State Petroleum Corporation (GSPC) has filed a contempt petition against GAIL for not complying with the orders of the Gujarat High Court.
SummaryGAIL has been supplying nine percent less gas that the amount mentioned in the agreement.

State-run Gujarat State Petroleum Corporation (GSPC) has filed a contempt petition against Gas Authority of India Limited (GAIL) for not complying with the orders of the Gujarat High Court.

This petition has been filed in the High Court after GAIL allegedly dishonoured the agreement with GSPC and also failed to comply with directions of the HC, state energy minister Saurab Patel stated in a release here on Friday. GAIL has been supplying nine percent less gas that the amount mentioned in the agreement.

As per this agreement, GAIL had to supply 0.5837 MMSCMD of gas every day to GSPC from Dahej (Bharuch district). This gas has to be supplied at 4.2 US dollars per MMBTU. However, GAIL has been supplying only 0.4389 MMSCMD, the release stated.

That's not all. The relatively expensive gas from Panna-Mukta-Tapi fields, that costs 5.70 US dollars per MMBTU is being supplied instead. Instead of supplying just 0.0705 MMSCMD of gas, GAIL has been supplying 0.929 MMSCMD.

The minister explained that GSPC has started clocking losses as it had reduced the prices of CNG by Rs 10 on December 27 onwards.

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