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GAIL issues notice to IPCL on gas supply pact
Our Bureau
New Delhi
,
Feb 21
GAIL (India) Ltd today said that it has served a notice to IPCL stating that supplies to the company would be disconnected if the latter does not sign a revised gas supply agreement.
GAIL supplies 1.03 million standard cubic metre per day (mmscmd) of gas spread over four IPCL units in Gujarat and Maharashtra.
In a statement, GAIL said that IPCL has not signed the revised gas supply agreement with it after the Government Pricing Order, which came into effect from July 1, 2005.
In spite of continuous efforts, IPCL has not come forward to sign the revised agreement on the same terms and conditions as agreed to by other customers, the statement added.
The notice was sent earlier this month urging IPCL to sign the agreement within a week.
IPCL had sought some more time to sort out the matter; in the meantime, it has offered security through a bank guarantee against the short payment, which GAIL has consented to, the statement added.
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