GAIL cancels ₹166-cr contract with IL&FS

Our Bureau New Delhi | Updated on February 06, 2019

B C Tripathi, GAIL Chairman and Managing Director

GAIL had last year awarded a portion of the 2,655-km of the Pradhan Mantri Urja Ganga project to IL&FS

GAIL (India) Limited has cancelled a 124-km pipe-laying contract earlier awarded to IL&FS. The cancellation comes in the wake of poor project progress on account of acute financial crisis.

This has been done to safeguard the project schedule of the Pradhan Mantri Urja Ganga natural gas pipeline to the eastern States, a GAIL statement said.

“The Bokaro-Durgapur section (124 km) is now re-tendered and awarded to three different contractors to expedite construction efforts for hooking up supply network to the fertiliser, city gas distribution and other industrial consumers,” the statement said.

“This section in West Bengal was to be built by IL&FS for ₹166 crore. The three companies have been awarded the tender for a similar amount,” a GAIL official said.

Consultant, too, replaced

Meanwhile, in a separate move taken earlier, project consultant Engineers India Limited was replaced by MECON for overseeing the project activities under this crucial stretch, GAIL said.

The final leg of Phase-I (the 585-km Phulpur-Patna section) of the 2,660-km pipeline project is now closer to readiness and natural gas supply to the Bihar capital Patna is expected to commence during the second fortnight of this month, GAIL added.

Published on February 06, 2019

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