Search the Internet          Tips  Sites: Finance, Investment

BORL opposes Reliance's mega gas pipelines proposal

Pradeep Puri

Bharat Oman Refineries Limited, implementing the Bina refinery project in Madhya Pradesh, has strongly opposed Reliance Industry's proposal for mega gas pipelines fearing these may be located close to the proposed Vadinar-Bina crude oil pipeline.

This, BORL has written to the petroleum ministry, could conflict with the progress of the Bina refinery project and might create "unwarranted problems" for it.

BORL has asked the petroleum ministry to specify certain conditions for Reliance before the government appoints competent authorities to process clearances for the proposed gas pipelines.

When contacted, a Reliance spokesman said: "Reliance has submitted the pipeline project right of user request in line with the government regulations. We are awaiting the government's response to our proposal."

BORL has suggested that in order to avoid any conflict with farmers who may agitate against allowing laying of more than one pipeline through their agricultural fields, it will be essential to specify a minimum safe distance of "half-a-kilometre" from the ROU of BORL's pipeline. Otherwise, aggrieved land-owners may take recourse to the legal route thereby delaying BORL's crude pipeline.

"It is also noticed that in Gujarat and some portions of Madhya Pradesh, the ROU of Reliance's pipeline is located towards the north of BORL's crude pipeline. For the balance portion in MP, it happens to be on the southern side. It will be essential to avoid any crossing of the ROUs of both these pipelines to prevent any possible technical, legal or practical problem in the field," BORL has said.

BORL said it learnt that serious efforts were being made to by-pass the process of obtaining environment clearances for Reliance's pipelines whereas all public sector units, including BORL, have had to go through the long process taking considerable time for it.

"It will be preferable to avoid any preferential treatment being meted out to any company at this juncture."

BORL has argued that it has already completed the acquisition of its ROU, including disbursement of compensation to land-owners for laying the crude oil pipeline from Vadinar to Bina. "The construction activities of BORL are expected to re-start in the near future, since the problem of environment clearance of a small portion of the pipeline near the south coast of the Gulf of Kutch, is in the process of being resolved."

However, according to BORL, it is being apprehended that the ROU of Reliance's gas pipeline, right next to that of BORL, can create unwarranted problems to the Vadinar-Bina pipeline.

Powered by

YOU MAY ALSO WANT TO READ:
The Rediff-Business Standard Special
The Budget 2001-2002 Special
Money
Business News

Tell us what you think of this report