Govt considering action against RGTIL for delay in project

NEW DELHI: The government is considering taking "appropriate administrative action" against billionaire Mukesh Ambani's privately owned RGTIL for delay in building four natural gas pipelines, Minister of State for Petroleum and Natural Gas R P N Singh said today.

Relogistics Infrastructure Ltd (Relog), a unit of Reliance Gas Transportation Infrastructure Ltd (RGTIL), had in 2007-08 won government authorisation to lay Kakinada- Basudebpur-Howrah pipeline, Kakinada-Chennai line, Chennai-Bangalore-Mangalore pipeline and Chennai-Tuticorin pipeline but physical work on these haven't started yet.

Relog cited uncertaintly about availability of gas for not building the lines in the stipulated three years.

"Appropriate administrative action in respect of the gas pipelines of RGTIL is under consideration for non-submission of bank guarantee and non-completion of pipeline projects within the stipulated period," Singh said in a written reply to a question in the Lok Sabha here today.

Bank guarantees of RGTIL and its subsidiaries submitted at the time of winning authorisation for laying the pipelines have all expired and have not been renewed.

Singh, however, did not state what action the government could take.