This refers to the report “Why Indian firms are so high on shale gas” (October 16). The pipeline projects under GAIL in Kerala and Tamil Nadu have virtually come to a standstill owing to stiff resistance from locals, particularly the farming community. Recently, work on the Dadri-Bawana and Bawana-Nangal pipelines were affected for similar reasons. Cairn Energy is also facing problems in extending the Salaya-Bhogat crude pipeline, and there is no settlement in sight. Vedanta’s Lanjigarh refinery is closed in Odisha.
Land is a state subject and the local government should play the proactive role of a facilitator, since no industry can thrive or sustain itself without land. Besides, the situation of shale gas drilling and exploration in India is quite complex.
Not only is the land-holding pattern of farmers in India small, it is limited to one or two rain-based harvests. The Land Acquisition Act, 1894, is yet to be revised. Water pollution owing to cracking has a damaging effect on the environment.
In the US, owners are compensated directly, unlike in India where resources are nationally-owned. Unless a shale gas policy is put in place to address these issues, it is futile to invite bids. It will create legal complexities on the part of those participating in the bidding process, if the land issue is not resolved by the state in terms of higher remuneration and mutual agreement between parties.
Harihar Prusty Noida
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