GAIL Pipeline in Kerala

Why in news?

Kozhikode in north Kerala recently witnessed violent protests against the laying of a pipeline by the Gas Authority of India Ltd (GAIL).

What is the project?

• The Kochi LNG terminal was meant to ensure natural gas supply for domestic and industrial use in Kerala and in South India.
• GAIL envisaged a pipeline to transport natural gas from Kochi to Mangaluru and Bengaluru.
• The Kochi-Koottanad-Bengaluru-Mangaluru Pipeline (KKBMPL) project was thus conceived in 2007.
• The first phase aimed at linking the terminal with local industrial users, including Bharat Petroleum Corporation Limited.
• The second phase of the pipeline was to go through seven districts of Kerala, besides covering parts of Tamil Nadu and Karnataka.

What are the concerns?

• The project has been delayed considerably because of resistance to acquisition of land under the Right of Use (RoU) agreement.
• The compensation for farmers and landowners who allow GAIL to lay the pipeline through their property is a contentious issue.
• The government has however doubled the compensation, and said it will be fixed by pegging the market rate at 10 times the fair price.
• Also, despite GAIL stressing that the LNG is both safe and essential for the state’s development, the agitators have serious safety concerns.
• Consequently, GAIL had to terminate the contracts it entered into with construction firms to lay the pipeline.
• The protestors demand that the pipeline be relocated from populated areas and taken through the sea route, instead.
• This has been rejected by GAIL, which reportedly fixed the alignment with minimising impact on populated areas.
• Also, as of the land required in Kerala, 70% is under paddy cultivation.
• The Kerala section also requires 75 major horizontal drillings at the beds of water bodies to take the pipeline across rivers.
• Thus, so many factors surrounding the pipeline poses challenges for its unhindered implementation.
• Despite the disruption attempts, GAIL has managed to continue laying the pipeline, though under heavy police protection.
• However, the project, which should have been commissioned in 2013, now has a revised deadline of February 2019.
• Meanwhile, the delay is causing huge losses to the Kochi terminal and re-tendering is resulting in cost escalations.

Quick Fact

How does Right of Use (RoU) work?

• GAIL acquires the Right of Use from landowners and/or farmers.
• Owners are then paid compensation as per the Petroleum and Mineral Pipelines (Acquisition of Right of User in Land) Act, 1962.
• Ownership remains with the landowners but they shouldn’t cultivate deep-rooted trees at a distance of 10 metres, or carry out constructions.
• GAIL pays compensation as per the amount fixed by the state revenue department.

Source: Indian Express