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Gujarat Govt drags GAIL to Court over Gas Shortfall

<p style="text-align: justify;"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">The Gujarat Government has filed a contempt petition in the Gujarat High Court against the Gas Authority of India Ltd (GAIL), a federal gas utility, for supplying lesser gas than promised.</span></span></span></p> <p style="text-align: justify;"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">According to Gujarat Energy Minister Saurabh Patel, the GAIL has violated the Gujarat High Court directions and also dishonoured its agreement with state-owned Gujarat State Petroleum Corporation (GSPC).</span></span></span></p> <p style="text-align: justify;"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">As per the agreement, GAIL had promised continued supply of total 0.5837 million metric standard cubic meters per day (mmscmd) gas from its Dahej delivery point, but the company is supplying 0.5318 mmscmd of gas--9 per cent less gas than agreed upon.</span></span></span></p> <p style="text-align: justify;"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">The minister also said that the GAIL had been supplying lesser quantity of cheaper gas and higher quantity of costlier gas from the Panna-Mukta-Tapi (PMT) fields.</span></span></span></p> <p style="text-align: justify;"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">The GAIL has been supplying 0.4389 mmscmd of subsidised gas (at $4.2 per barrel) against the promised 0.5132 mmscmd. Also, the relatively expensive gas from PMT fields, that costs US$5.70 per mmbtu is being supplied instead. Instead of supplying just 0.0705 mmscmd of gas, GAIL has been supplying 0.929 mmscmd.</span></span></span></p> <p style="text-align: justify;"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">The minister explained that GSPC had started clocking losses as it had reduced the prices of CNG by Rs 10 from December 27 onwards after a court order.</span></span></span></p> <p style="text-align: justify;"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">Last week, the State Government reduced prices of CNG by INR 10.10 per kg and Piped Natural Gas (PNG) by&nbsp; INR 2 per standard cubic metre after signing the agreement with GAIL.</span></span></span></p> <p style="text-align: justify;"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">The price cut has benefited 1.23 million households and 234,000 CNG vehicle owners.</span></span></span></p> <p style="text-align: justify;"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">Earlier, A PIL had been filed by an NGO alleging discrimination in supply of natural gas to Gujarat, compared to Mumbai and Delhi.</span></span></span></p> <p style="text-align: justify;"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">Source-On Request</span></span></span></p>