Petronet LNG has said it may have to drop the LNG pipeline project in Kerala if outstanding procedural issues are not dealt with in a time-bound manner.

AK Balyan, MD and CEO, had discussions here with Chief Minister Oommen Chandy, his Cabinet colleagues and officials on the delayed project that links Kochi with Bangalore and Mangalore.

Alternative alignment

The target was to complete the project by May 27, Balyan said. Even assuming that the Puthuvype terminal operated at only 30 per cent, it would still earn the State ₹900 crore to ₹1,000 crore annually.

Project executor GAIL India had received approval for laying 1,114-km pipeline at an investment of around ₹3,000 crore. Of this, 505 km had been proposed to cut through seven districts of the State.

Monitoring committee

The meeting held here on Wednesday agreed to consider an alternative alignment for the pipeline in place of the Kochi-Kanjirkkod-Bangalore and Kanjirkkod-Mangalore route.

This alignment would run along the abandoned Canoli Canal and bypass densely populated areas, according to official sources.

A committee, headed by the District Collector with representatives of GAIL India and Executive Engineer, Irrigation, have been asked to look into the feasibility aspect. A State-level monitoring committee, headed by G Vijayaraghavan, Member, Planning Board, with Secretaries of Irrigation, Revenue and Industries as members, has also been set up to expedite the work.

Chief Minister Chandy will review the progress in June.

Addressing press conference later, PK Kunhalikkutty, Minister for Industries, and Aryadan Mohammed, Minister for Electricity, observed that the pipeline project had nearly stalled.

Utilisation of the terminal at Puthuvype in Kochi was at just one per cent with BPCL-Kochi Refineries being the only bulk consumer now.

The proposed canal alignment would be devoid of issues connected with land acquisition and litigation and also save money needed for taking over land.

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