Reliance Gas Transportation Infrastructure Ltd's licences to lay natural gas pipelines may be cancelled

NEW DELHI: The oil ministry is considering cancelling Reliance Gas Transportation Infrastructure Ltd's ( RGTIL) licences to lay natural gas pipelines on the ground that it has not met deadlines for construction, government and industry officials said. However, sources close to the company say the project can be quickly executed if natural gas is available.

"The government is of view to terminate RGTIL's licenses. A final decision will be taken soon," a government official said, requesting anonymity. The oil ministry's move is based on oil sector regulator Petroleum & Natural Gas Regulatory Board's (PNGRB) recommendations, the official said. Industry officials say that RGTIL has lost interest in laying four trunk pipelines after the government allocated all domestic gas to other sectors, leaving no gas for the firm to transport.

The oil ministry has rejected RGTIL's argument that the company was prepared with designs, surveys, layouts and other regulatory approvals and it would start laying pipelines immediately after a source of gas is identified. The company had earlier said that it could lay the four pipelines in just a couple of months before gas is made available for transportation in these regions.