Court approves Gas Authority of India’s $500m Kochi-Mangalore pipeline project in Tamil Nadu

Gas Authority of India (GAIL) has secured the clearance from the Supreme Court for its Rs34bn ($500m) Kochi-Mangalore natural gas pipeline project in Tamil Nadu.

A plea by the state government against the 900km pipeline seeking its re-alignment was dismissed by the court.

The pipeline, which will pass through farmland in Coimbatore, Tirupur, Salem, Erode, Namakkal, Dharmapuri and Krishnagiri districts of Tamil Nadu is planned to be laid between Kochi terminal, Kuttanad, Bengaluru and Mangaluru.

Arguing about the effect of pipelines on the livelihood of 5,500 small farmers, the state government suggested that pipelines should be aligned along the national highways instead of laying them close to the homes and lands of farmers.

The Hindu cited Chief Justice of India TS Thakur and Justices Sikri and Banumathi ruling: "If you (State) have any problem you should have taken up the matter with the centre, but you have no authority to direct GAIL to alter the alignment."

According to GAIL’s counsel and senior advocate Dhruv Mehta, already 200km section of the pipeline has been laid at a cost of Rs6850m ($100m).

The bench said that GAIL will be able to pay 10% of the value of lands as compensation in addition to 30% of the amount determined.

Following opposition by the government in March 2014, GAIL cancelled an Rs2.5bn ($36.7m) contract awarded to engineering firm Fabtech for the construction of 300km of the pipeline.