Gail India is receiving lukewarm response from the fertilizer units along the proposed Jagdishpur-Haldia Pipeline (JHPL). These fertilizer units fear that the price of gas offered through it by Gail will be exorbitant and are unwilling to commit themselves as customers. However, the government wants Gail to go ahead with the project and wants the gas major to approach non-fertilizer customers to see whether enough gas can be booked to make the pipeline viable.
Gail is however in a delicate situation. On the one hand, the company is not finding enough customers to buy the gas from the proposed pipeline and on the other hand, there is no confirmed source from where gas may be procured to supply the potential customers. Still the government wants Gail to go ahead with the project and that too within next two months.
JHPL was originally conceived considering the availability of the KG gas at Haldia through the Reliance Gas Transportation Infrastructure Limited’s Kakinada-Haldia pipeline. However, Gail India’s plans went haywire when the Petroleum Ministry rescinded the Kakinada-Haldia pipeline project due to non-compliance of the terms and conditions contained in the authorization letter.