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IOC, GAIL signed Rs 46,500 crore use or pay contract with Adani without tender, alleges Trinamul's Mahua Moitra

Dhamra LNG terminal is a five million tonne per annum (Mtpa) LNG import and regasification facility at Dhamra Port, in the Bhadrak district of Odisha, India

twitter-logoBusinessToday.In | December 10, 2019 | Updated 22:39 IST
IOC, GAIL signed Rs 46,500 crore use or pay contract with Adani without tender, alleges Trinamul's Mahua Moitra

Trinamul Congress MP Mahua Moitra on Tuesday alleged that state-owned Indian Oil Corporation (IOC) and GAIL India have "signed Rs 46,500 crore use or pay contract for LNG terminal at Dhamra with Adani without tender process".

"The Rs 46,500 crore use or pay contract was given to Adani group with no tender, which is in complete violation of Central Vigilance Commission (CVC) guideline," Moitra said in the Lok Sabha.

Dhamra LNG terminal is a five million tonne per annum (Mtpa) LNG import and regasification facility at Dhamra Port, in the Bhadrak district of Odisha, India.

IOC and GAIL had on September 21, 2016, signed a 'non-binding' agreement to buy 50 per cent stake in Adani Group's Rs 5,500-crore Dhamra LNG project in Odisha. But that agreement expired on September 20, 2018, without being translated into a firm pact apparently because of differences over valuation.

Also, Petronet LNG - a firm in which GAIL and IOC are promoters - had shelved plans to set up a 5 million tonne a year LNG import facility at Gangavaram in Andhra Pradesh. After shelving their respective plans, IOC and GAIL signed a pact with Dhamra LNG Terminal, a firm owned by Adani Ports and Special Economic Zone (APSEZ), a part of the Adani Group.

The two firms also have an equity stake in Petronet LNG which operates two LNG regas terminals, one at Dahej in Gujarat and the other at Kochi in Kerala.

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