Supreme Court paves way for GAIL’s Rs 3,400-crore Tamil Nadu gas pipeline project

By: |
Updated: February 03, 2016 1:40 AM

The Supreme Court on Tuesday paved the way for GAIL India’s controversial Kochi-Mangalore natural gas pipeline project in Tamil Nadu (TN).

GAIL argued that it had already invested Rs 600 crore in the project and had all necessary clearances and just a handful of farmers were objecting to the pipeline.GAIL argued that it had already invested Rs 600 crore in the project and had all necessary clearances and just a handful of farmers were objecting to the pipeline.

The Supreme Court on Tuesday paved the way for GAIL India’s controversial Kochi-Mangalore natural gas pipeline project in Tamil Nadu (TN).

Land acquisition issues and stiff opposition by farmers and the TN government had disrupted a key section of GAIL’s ambitious R3,400-crore Kochi-Kuttanad-Bengaluru-Mangalore gas pipeline project, which is passing through farmland in seven districts of the state, covering a distance of 310 km there, 505 km in Kerala and 85 km in Karnataka. A bench headed by Chief Justice T S Thakur, while quashing the state government’s notification that had sought re-alignment of the pipeline, said that the Tamil Nadu government — which has rallied behind the state’s farmers — had no jurisdiction to direct such realignment.

The apex court, however, directed GAIL to pay enhanced compensation to farmers, and asked the state government to revise its computation of the market value of lands affected by the pipeline. It also asked the state government to determine modalities of the compensation to be given to the farmers and allowed enhanced compensation by 30% over and above the statutory compensation of 10% of the market value of the project.

The court had in January 2014 asked the Tamil Nadu government and GAIL to maintain status quo on the implementation of the ambitious pipeline project.

GAIL argued that it had already invested Rs 600 crore in the project and had all necessary clearances and just a handful of farmers were objecting to the pipeline.

Both the farmers and the TN government had challenged the Madras High Court’s order that quashed its directive putting curbs on GAIL from implementing its project.

Do you know What is India expected to grow 10 pc during current fiscal: NCAER Director General Poonam Gupt,FinMin releases Rs 9,871 cr grant to 17 state, Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Saubhagya scheme sees electrification in 2.82 crore households
2PM Modi in talks with Prez Biden lays emphasis on developing trade, economic ties: FS Shringla
3Labour market recovery swift but partial and exhausting, says Mahesh Vyas, MD & CEO of CMIE