GAIL India?s Kochi-Mangalore natural gas pipeline is under a stalemate due to concerns raised by the Tamil Nadu government of its potential negative impact on agricultural land.
The Tamil Nadu government on Friday moved the Supreme Court challenging the Madras High Court?s ruling that quashed the state?s order putting curbs on Gail India from implementing its Kochi-Kuttanad-Bangalore-Mangalore gas pipeline project passing through agricultural lands in seven districts of the state.
?The TN govt wanted us to remove whatever pipeline we have laid in farm lands and lay it only along the highway. Until the state government is with us wholeheartedly, the project cannot become successful,? RD Goyal, director (projects), Gail, told FE.
Goyal says the issue has national ramifications, as similar issues could creep up in other parts of the country. Even in Kerala, he says, though the state government has granted permission for using state land for the pipeline, sporadic issues have been raised by locals in some parts of Kerala.
The 900-km pipeline, costing R3,400crore, will pass through three southern states. So far Gail has invested roughly R2,000 crore in the project.
Goyal said the company is also facing problems in other parts of the country over land acquisition, particularly in forest areas. He felt that land acquisition concerns must be addressed by the government, otherwise this will affect the PSU?s operations as it has pipelines across the vast stretches of the country.
Gail had challenged the state government?s notification asking it to stop placing pipelines in agricultural lands, and instead, lay them along national highways. The project was supposed to pass through 134 villages of Tamil Nadu, covering a distance of 310 km in the state.
Challenging the HC order, the TN government in its appeal before the apex court said the present alignment of the project would affect the lives and livelihood of about 5,500 small farmers. Citing large-scale violence and agitations that took place in Nandigram and Singur villages of West Bengal over land acquisitions, the TN government said, ?the HC failed to see that the farmers were not paid the full compensation in terms of the Petroleum and Minerals Pipeline (PMP) Act 1962, which itself is only a pittance, with the farmer losing virtually his entire control over use of land and what he is left with is only the title.?
Gail officials said, ?as per the PMP Act, Gail India, with the help of the state revenue department, is now fixing the market value of the land for compensating the farmers. Around 10% of the market value is paid as land compensation in addition to crop compensation and tree compensation, which are accrued on the current price.? They also said the right of use the company is seeking is ?not a permanent land acquisition.?
It is anxious moments for Gail officials until the apex court gives its last word on the stand-off.