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Forum Name : Should GAIL get monopoly rights over the national gas grid ?      << Bulletin Board Home

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Should GAIL get monopoly rights over the national gas grid 13 Jul 2004 11:36 AM
GAIL has of late gone on the offensive for becoming the sole agency for implementation and operation of the proposed nationwide gas grid. The gas operator&quot;es 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. However, others disagree with GAIL&quot;es 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&nbsp; 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&quot;es resolve and it is still undecided on the ownership pattern of the gas grid . &quot;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.&quot;
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A K Srivastava Pipeline transportation business to be competitive 16 Nov 2005 11:27 PM
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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