Multiple entry in gas pipeline hits hurdle

The government’s move to allow multiple players for setting up the gas pipeline infrastructure in the country is all set to run into ro...

The government’s move to allow multiple players for setting up the gas pipeline infrastructure in the country is all set to run into rough weather with the Left parties deciding to oppose the move. Left parties are also planning to meet the petroleum minister and express their reservations.

Speaking to The Indian Express, MP and Left leader Nilotpal Basu said ‘‘we are taking up this issue. An important infrastructure such as the gas grid cannot be left open to private players and be run on simple business concerns. This would mean that areas like the eastern region and the north eastern region would be left high and dry and gas being an important feedstock for the industry is required in these areas too’’.

According to Basu, the implication of allowing private players in the gas grid would go against the equitable growth of all the regions. ‘‘The fallout would go against the Common Minimum Programme (CMP) of the UPA government and we would oppose this move.’’ The Left is expected to take up the issue with the petroleum ministry next week.

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Left had also stated that during the previous government, the draft policy had already stated that the gas PSU major GAIL should be the sole authority for laying the gas grid and this government should stick to the earlier draft proposal. Given the opposition from the Left, the petroleum ministry might not find it easy to push forward the new proposal.

According to ministry sources, the draft pipeline policy which has been prepared by the petroleum ministry and is awaiting the nod of the petroleum minister, has proposed to allow multiple players in building and controlling inter-state and high-pressure gas pipelines. The policy has also stated that all new gas pipelines would be built under common carrier principle where the operator will have the provision of 25 per cent excess capacity required for the allocation on open access basis. Entities will have to seek authorisation for laying pipelines from the government/regulator who will fix the pipeline capacity taking into account the total demand.

Once the petroleum ministry clears the proposal, it might be taken up by the Cabinet provided the government do not want to refer the matter fresh to the Committee of Secretaries (CoS).

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