Kerala chief minister Oommen Chandy has announced the state government's willingness to offer up to 50 per cent of the market price of land as project compensation to those surrendering their landholdings for the PSU gas major GAIL's LNG pipeline works in the state.
The decision was taken at a high-level meeting held at Thiruvananthapuram on Tuesday.
Earlier, the state had approved a land compensation of 10-20 per cent, which was recommended by GAIL. In other states, only 10 per cent of the market land value was being offered as compensation.
With a stiff resistance from local's in giving their land for the pipeline project, especially in districts like Kozhikode and Malappuram, it was decided in the meeting to raise the compensation package.
The chief minister said the Ernakulam City Gas Project would be implemented as part of the GAIL's Gas Project, for domestic consumption. Tenders for this would be finalised in November. Six companies had submitted tender documents and it was being finalised by the Petroleum and Natural Gas Regulatory Board (PNGRB).
The city gas project is meant for supplying cooking gas to homes, which would commence as soon as the required notification from the Union Petroleum ministry is obtained. Kerala government had formed a separate company, Kerala GAIL Gas, for implementing the project.
In the first phase, a 24-hour gas distribution facility would be made available to various flat complexes in Kochi. The state government would take into account the concerns put forward by the people's representatives from the seven districts through which the pipeline is running.
An earlier suggestion was to relocate the project via Canoli Canal, but that was out by technical experts, the chief minister said.
According to the chief minister, if circumstances warrant, there would be minor changes in the present alignment.
The government was in possession of many suggestions with regard to the compensation for the land acquired for the project.
The land acquired for the project would remain as property of the land owner and GAIL would only enjoy the right of usage. A final decision regarding the alignment of the project and compensation for the acquired land would be decided in subsequent meetings.
Of the 505 Kms line in Kerala, only 52 Kms have been completed so far and primary report for 210 Kms has also been prepared. There is stiff opposition from the land owners in Kerala and Tamilnadu in releasing the land for the purpose, due to various reasons which includes compensation package. . GAIL had received approval for laying 1114 km of pipeline with an investment exceeding Rs.3000 crore. Of the 1114 kms, 505 kms had been proposed through seven districts of Kerala. As many as 31 stations had been proposed at 19 places in the State.
