Gail India is facing stiff resistance from its industrial customers in Sonipat, Meerut, Kota and Dewas region as they are unhappy with the price disparity created by the sale of RLNG (re-gasified LNG). Industrial customers are piqued by the high gas prices and are reportedly threatening to terminate Gas Sales Agreement. It should be noted that RLNG being sold at these cities costs almost three times more than the APM gas. Finding itself in delicate situation, Gail India has approached the petroleum ministry to allocate domestic APM and Panna-Mukta -Tapti (PMT gas for the customers in this region.
Gail India has laid 320 km steel pipeline and 531 km MDPE pipeline in the cities of Sonipat, Kota, Dewas, Meerut and Agra-Firozabad investing around Rs 350 crore. There are 341 industrial units in Agra-Firozabad region and about 88 industrial customers in four allocated cities of Sonipat, Kota, Dewas and Meerut. All these cities fall within Taj Trapezium Zone (TTZ) which is a defined area of 10,400 sq km around the Taj Mahal to protect the monument from pollution. In 1996, the Supreme Court had banned industries using coal/ coke within this zone.