The project was already delayed by two years, causing a Rs 300-crore loss to the company. Now, the Rs 3,300-crore project would cost another Rs 1,000 crore, according to industry sources.
The pipeline project has now become a political issue, especially in light of the upcoming Assembly elections in the state. According to sources, some organisations that oppose the project are also exploring legal options.
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The 925-km Kochi- Koottanad-Bengaluru-Mangaluru pipeline passes through Kerala (505 km), Tamil Nadu (310 km) and Karnataka (60 km). GAIL said pipeline had already been laid along 200 km at a cost of Rs 685 crore. On Tuesday, the apex court had dismissed the Tamil Nadu government's objections and allowed GAIL to lay down the pipelines in the state. The Tamil Nadu government had argued the pipelines would affect the livelihood of about 5,500 small farmers.
Upholding the Madras High Court judgment, which was challenged by the state government, the SC observed that Tamil Nadu had no technical expertise or legal authority to ask GAIL to change its pipeline route. GAIL in a statement said: "It (the SC ruling) is a heartening development. GAIL will work in close coordination with the Tamil Nadu government to restart the pipeline laying work of the 310-km long stretch passing through the state."
When contacted, company spokesperson Jyoti Kumar declined to comment on the loss from the project and whether the project cost would now escalate because of the delay.
The company plans to resume the project and complete it in 36 months. The project was originally started in 2012. Of the total project, only 50 km has been completed in Ernakulam (Kerala).
In support of the farmers, the Tamil Nadu government had asked GAIL to stop the project, while giving the option of laying pipelines along the National Highway. GAIL, however, rejected this offer saying it was not possible to change route.
"Upon completion, the project will provide access to modern and clean fuel critical for economic growth and quality of living for citizens, farmers, and industry. Today, there is not much awareness about the project among the farmers and we will focus on that," said Kumar.