LNG pipeline: Kerala govt. working on new compensation package

Compensation to those who permit use of their landholding

The government is working on a new compensation package, under which a monthly rent would be paid to the owners of land used for laying LNG pipelines in Kerala for the national gas grid project.

Chief Minister Oommen Chandy said in the Assembly on Thursday that the proposal was being considered as an attractive option for landowners to permit the use of their property for laying pipelines as part of the gas grid network extending from Puthuvype in Ernakulam to Mangalore and Bangalore.

Adjournment motion

Replying to the notice for an adjournment motion moved by S. Sarma on the opposition to the LNG pipeline project, Mr. Chandy said the monthly rental scheme was envisaged to provide a steady income for small landholders. Simultaneous efforts were on to expedite the Kochi City Gas Scheme under which piped LNG would be provided to domestic cooking gas consumers.

Safety concerns

“The government hopes the city gas scheme would help to allay fears about the safety of piped LNG and overcome the opposition from certain quarters. The scheme is awaiting the gas distribution licence from the Central government,” he said.

Terming the LNG project as critical to the development of the State, Mr. Chandy said it would provide cheaper feedstock, help drive down production cost in power generation units such as the NTPC, Kayanmkulam, and industries such as FACT. “KSRTC will also benefit from the project in the form of cheaper, cleaner fuel for buses”.

Responding to Mr. Sarma’s concern that the tenders for laying pipelines had been terminated, Mr. Chandy said GAIL had promised to invite fresh bids if the State was willing to implement the project. The government, he added, would convene a meeting of people’s representatives soon to settle the local protests that were holding up the work of laying pipelines in Kannur, Kozhikode and Malappuram districts.

Local protests

“While the compensation for landowners in other States was 10 per cent of the fair value of land, it has been enhanced to 50 per cent in Kerala. Besides, the width of land required for laying the pipelines has been brought down to 10 metres, as opposed to 20 elsewhere in the country. Yet, the work has been bogged down by local protests”, Mr.Chandy said.

Moving the notice, Mr. Sarma said Petronet LNG’s bid to lease out the gas tanks at Puthuvype would derail Kerala’s ambitious plans.