Cong, BJP spar over gas pipeline contracts

Written By dna Correspondent | Updated:

After fighting over allocation of gas to Gujarat, the ruling BJP and opposition Congress are now locked in a battle over award of contracts for supply of gas pipelines for GSPL’s cross-country pipeline project.

After fighting over allocation of gas to Gujarat, the ruling BJP and opposition Congress are now locked in a battle over award of contracts for supply of gas pipelines for GSPL’s cross-country pipeline project.

A day after leader of Opposition Shaktisinh Gohil alleged that a scam was in the making in award of tenders for supply of pipes by a subsidiary of GSPL, the BJP hit back challenging Gohil to prove his allegations or to apologise for the remarks.

“Tenders for procuring gas pipelines and civil works are being prepared in such a manner that only a Kutch-based private manufacturing firm gets selected as the supplier. This is aimed at thwarting competition and to allow monopoly of a single firm,” alleged Gohil.

He alleged that this was being done at the behest of the chief minister because the firm concerned had offered election funds of Rs500 crore to the ruling party.

The BJP, however, dismissed the allegations. “The allegation of Rs500-crore-scam in award of contracts for supply of gas is an attempt to mislead people of the state. Even the tenders for supply of pipes have not been issued so far,” said Saurabh Patel, state energy minister in response to Gohil’s charge.

Patel also pointed out that three central PSUs – HPCL, BPCL and IOCL – are partners of GSPL in the joint venture (JV) executing the pipeline project. He alleged that the allegations were a desperate attempt to divert attention from scams in Delhi.

GSPC group company GSPL had bagged three cross-country gas pipeline projects totalling close to 4,000km. GSPL holds 52% stake in the JV, IOCL 26%, while HPCL and BPCL hold 11% each. The total cost of the three pipeline projects is estimated at Rs12,000 crore.