Petroleum and Natural Gas Regulatory Board (PNGRB) has cancelled GAIL’s license to build Surat-Paradip natural gas pipeline and ordered encashment of its performance bank guarantee after the state firm failed to make progress on the project six years after obtaining license.
PNGRB, the downstream regulator, had authorised GAIL to lay Surat-Paradip pipeline in April 2012. After GAIL failed to submit its project funding plans for years, the regulator penalised the state firm by ordering encashing of a quarter of its Rs 20 crore performance bank guarantee in September 2015.
GAIL’s challenge of the regulator’s order was dismissed by Delhi High Court in April 2017, following which Rs 5 crore of bank guarantee was encashed. The regulator also directed GAIL to replenish this amount as bank guarantee and quickly submit financial closure plan for the project. Read More…
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