The Hindu Business Line : Panel pulls up GAIL for not cancelling tender

GAIL (India) Ltd has been pulled up by a Parliamentary panel for non-compliance with a Presidential Directive cancelling the tender for Dahej-Uran Pipeline Project (DUPL) and issuing fresh tenders.

The Standing Committee on Petroleum & Natural Gas on demands for grants (2005-06) of the Ministry of Petroleum on Wednesday directed the Ministry for Petroleum and Natural Gas to appoint a high-level fact-finding team to look into the matter and submit its report to the committee within a fortnight.

The committee noted that the project, scheduled for commissioning in February 2005, has been delayed due to technical problems. The problem was in the stipulation of longitudinally submerged arc welded (LSAW) pipes by GAIL in its tenders for gas transmission pipelines, which are more expensive than helically submerged arc welded (HSAW) pipes, though both are equally good for gas transportation.

Considering the technical nature of the issue involved, the Government had referred the matter to the Centre for High Technology (CHT). The CHT said that both pipes are used for gas transportation internationally and that both should therefore be included in the tender document. Subsequently, the Ministry in consultation with the Department of Public Enterprises issued a presidential directive to GAIL to cancel its tender for DUPL and issue fresh tenders.

The committee observed that it was surprised to note that GAIL had not suo motu cancelled the tender for the pipeline, which had specified only LSAW pipes, even after the findings of CHT came to its notice.

It also asked the Ministry to apprise it of the number of tenders invited/finalised by GAIL, specifying only LSAW pipes after the findings of CHT came to the knowledge of the Government and the financial loss caused as a result of GAIL's decision.

The company was directed to expedite its decision in the matter and issue fresh tenders facilitating wider participation of bidders thereby securing the most competitive prices for the pipeline project.

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