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Forum Name :
Should GAIL get monopoly rights over the national gas grid ?
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Total 25 reply(s),
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Should GAIL get monopoly rights over the national gas grid
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13 Jul 2004 11:36 AM
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GAIL has of late gone on the offensive <font size="2">for becoming the sole
agency for implementation and operation of the proposed nationwide gas grid.
The gas operator's case is quite strong. The company has
claimed complete ownership of the grid on grounds of sensitivity and project
value, both in terms of cost and energy security. Further, it has argued that
globally 38 out of 39 countries preferred single ownership of the gas network.
What is more, the usual practice is to ensure public or state ownership,
except USA which has a multiplayer system. Also, the argument goes, single
ownership of gas grid would ensure uninterrupted and consistent supply of gas
to the markets, along with operational cost savings for the economy. </font>However, others disagree with GAIL's views, notably Reliance, Shell and BP.
Their argument is that the 7,900 km. gas grid should not be restricted to one
player. Rather, it should be left to market forces. The government
conferred monopoly status on GAIL in its draft gas pipeline policy. But,
continuing debate on the matter and vehement objections from the
abovementioned private players has shaken the government's resolve and it is
still undecided on the ownership pattern of the gas grid . <b> How about you? Do you
feel the national gas grid would be better off with a GAIL monopoly or do you
think other players should also take part in the process? Click on our
Bulletin Board ( it is not password protected) and write in your views.</b>
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A K Srivastava
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Pipeline transportation business to be competitive
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16 Nov 2005 11:27 PM
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Giving monopoly right to a party is likely to distort especially gas market and very purpose of flow of gas from one part of India to another part may hamper. This may also lead to a situation when consumers may have to pay higher transportation charges.
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mahesh chandra panda
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don't be baised
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21 Oct 2005 05:47 AM
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its the real time to give rights to the psu and other goverment owned industry to take part in the profit making rather than bearing the burden of the whole economy.
think in the point of view of the GAIL why it is not becoming the real rolr model in the industry?
private players are allowed to slash down the prices but the goverment one have to give them competition by bearing the burden of more than 240000 crores of subsidies.
this can really be breakeven if the gail is allowed for the national grid so that he can easily control the demand and pricing of the gas sector.
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Henry Dev Lall
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Rise and shine! Rise and Shine!
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20 Oct 2005 11:46 AM
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Hey, why don't you guys initiate another relevant issue? GAIL's monopoly is long gone-- truly buried and dead and for all you know, resurrected and buried again. Ashes to ashes, dust to dust, pal! So, rise and shine, rise and shine. Aren't you guys supposed to be THE news site for the OIL & GAS Industry in the whole gig? So, get your asses moving and rack your rusted brains!
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Vivek Tripathi
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Live n Let Others Live
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16 Sep 2005 07:26 AM
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GAIL has been given undue priority to lay and own natural gas pipelines in India Courtesy goes to MoP& NG
This Jinx was earlier broken by companies like GGCL and GSPC due to empowerment given by Natural gas transmission and distribution act Gujarat,2001.
but this kind of act should be repeated to provide a level playing field and not just feeding one kid over the other and making it a monster.
When it is the matter of laying pipeline for expansion of Panipat refinery then the hold ofthe pipeline should be given to IOC only
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Kharkhuwa Kachari
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Don't worry, be happy!
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17 Aug 2005 05:06 AM
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What's the point in disucssing this issue? There is no issue -- Gail is already out of the monopoly grid, ladies and gentlemen!
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s.ganguly
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owner
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11 Aug 2005 05:48 AM
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In my view only GAIL should be given the right as Gas pipeline involves high safety related issues and GAIl have an excellent past record and also being government company has accountability . Where as private players can manupulate with the figures as the case of UC Bhopal which every one knowes.Also this right is only for construction and maintenance of pipeline. Hence all company has the right to send their product. But by giving ownership to one company ie GAIL the cost of maintenance will be reduced which will benefit the consumers.
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Sant Sehgal
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Gas monopoly
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25 Jul 2005 06:07 AM
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No one company should have the right to have monopoly. Competition is beneficial, monopoly is a bane.
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Jitin Saxena
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Gas Grid - a solution
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09 Jun 2005 05:23 AM
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Primary objective of Gas grid will be to create a homogeneous gas market in India. Means, gas from various productions should reach the market where it is most needed in order to balance the supply anmd demand of market. single ownership of gas grid would ensure this uninterrupted and consistent supply of gas to the markets. Also the cost of the transportation can be further moniotored at minitry level which in turn will control the economy. GAIL being the oldest and establised indian player must be allowed to lay the gas grid in sole matter.
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Dev
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"Customer is the king"
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10 Mar 2005 07:05 AM
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Monopoly means abnormal profits and the death of competition. Its the end consumer who will be at the receiving end of such a thoughtless move. I hope rather than creating a monopoly the ministry removes the barriers to entry and facilitates healthy competition by getting in more players which wil result in interdynamics of market forces which will result in beter value to consumers. I hope Mr Aiyar hasn't forgotten that "cutomer is the king",that is the only thing that works effectively, not monopoly
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