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Sparks continue to fly over ‘gas pipeline’ in Assembly

PUDUCHERRY: The Memorandum of Understanding (MoU) entered into by the Puducherry government with the Reliance Industries a couple of years ago for laying a gas pipeline through Yanam region rocked the Assembly on Thursday too.

The House witnessed uproarious scenes with members belonging to different regions raising doubts about the MoU. They insisted that the project should benefit all the four regions.

Chief Minister N.Rangasamy made it clear that the government would not finalise a “legally binding agreement” with the company without ascertaining that gas was supplied at concessional rates, besides ensuring that the deal benefited the Union Territory.

Minister for Industries and Power V. Vaithilingam said a review meeting held on April 9 had decided to form a joint working committee comprising representatives of the government and Reliance Industries to discuss and resolve various issues pertaining to the agreement.

He denied that the government had decided to forego the royalty to be paid by the company. The royalty would be decided only when the agreement was clinched, he said.

Mr. Rangasamy said that the possibility of establishing a 250-MW power plant by the public sector Puducherry Power Corporation was also being studied.

The issue was raised for the second day by leader of All India Anna Dravida Munnetra Kazhagam A. Anbalagan, who wanted to know the details of the MoU.

Presenting a detailed statement, Mr. Vaithilingam said the MoU signed on August 23, 2006 was valid for two years from the date it was executed.

As per the MoU, Reliance Industries agreed to allocate available natural gas on priority basis and on certain terms and conditions, to the proposed 250-MW power plant to be set up in Yanam by a competent agency to be nominated by the Union Territory government.

Through the project, the government wanted to make gas available to industries in Yanam, besides developing city gas distribution networks in the region, he said.

As per the MoU, the sides would cooperate in identifying markets for promoting natural gas supply to industrial, commercial and domestic segments in Yanam.

Reliance had agreed to supplement the efforts of local administration with regard to social welfare measures. It also agreed to construct a 100 metre-tower resembling the Eiffel Tower.

As the MoU was entered into without the approval of the competent authority, the issue was referred to the Ministry of Home Affairs, which, in a letter on February 1, had said that the accord was not a contract in terms of Article 299 of the Constitution as well as under Clause 5 (1) of the Rules of Business of Government of Puducherry and it had no binding force, he said.

With regard to according “expost facto approval” by the Lt. Governor who was the competent authority, it had been stated that there was no bar in according the approval without any change in it but in the event of any rectification, a fresh MoU with the requisite approvals by the Central Ministries and agencies concerned would be needed, Mr. Vaithilingam said.

The issue was discussed in the Cabinet on March 18 and decided to accord in principle approval for executing the MoU, he said, adding that it was also decided that all relevant issues such as continuous supply of the quantity and quality of the gas at concessional tariff and resettlement of displaced population if any would be examined and negotiated with Reliance before entering into a binding agreement with the company with the approval of the Central Ministries and agencies concerned.

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