Reliance ready to pay market rate to farmers

Reliance Gas Transportation and Infrastructure Company, headed by Mukesh Ambani, 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. Senior advocate Harish Salve appearing for the company before a Bench presided by Justice B N Agrawal submitted this. Justice Agrawal then adjourned the matter for further directions to a later date.

Salve told the court 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 matter had reached the apex court in March, after the company challenged the Andhra Pradesh High Court’s order staying the laying down of pipeline. The High Court on November 13, 2007 had refrained the company from proceeding with 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.

The farmers in their separate petitions had alleged before the HC that Reliance was laying down the pipeline illegally passing through their lands. The farmers had sought setting aside of the provisions of the Petroleum and Mineral, Pipelines (Acquisition of Right of User in Land) Act, 1962.