GAIL hits delays in two key pipeline projects; MNJPL cost up Rs 411 crore

New Delhi: State-owned GAIL (India) Ltd has announced a revision in the completion timeline and capital cost for its flagship Mumbai-Nagpur-Jharsuguda Pipeline (MNJPL) project. The pipeline, which spans 1,702 km across western and eastern India, will now be completed progressively by September 30, 2025, instead of the previously scheduled June 2025.

The company’s board, which met on Monday, also approved an additional investment of Rs 411.12 crore, taking the total project cost to Rs 8,255.37 crore — 5.24 percent higher than the originally approved cost of Rs 7,844.25 crore.

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Delays linked to forest clearances, corridor permissions

According to GAIL, mechanical completion of the Mumbai-Nagpur leg (Part A) has been achieved, except for minor patches delayed by utility corridor issues involving Maharashtra State Road Development Corporation (MSRDC). The other two pipeline legs — Nagpur-Jharsuguda (Part B) and Nagpur-Jabalpur (Part C) — are 98 percent and 97 percent mechanically completed, respectively. However, these sections have been impacted by delays in forest permissions, NBWL clearance, and land acquisition challenges.

Srikakulam-Angul pipeline completion pushed to Dec 2025

In a separate filing, GAIL said that the completion date for its 744-km Srikakulam-Angul pipeline has also been pushed from June 2025 to December 2025. While the 422-km mainline is mechanically complete and commissioning is underway, progress on the 322-km spur line has been delayed due to pending forest permissions. As of now, permission for only 45 km of the required 56 km has been received.

GAIL board okays Rs 844-cr for capacity upgrade on DUPL-DPPL network

Additionally, the board approved a Rs 844-crore investment for augmenting capacity on its DUPL-DPPL natural gas pipeline network. The plan, authorised by the Petroleum and Natural Gas Regulatory Board (PNGRB) in March 2025, involves raising capacity by 2.5 MMSCMD — from the current 19.9 MMSCMD to 22.4 MMSCMD — over the next three years. The project will be funded through a mix of debt and equity.

GAIL said the expansion aligns with its long-term business growth strategy and rising demand across its pipeline network, where average utilisation currently stands at 15 MMSCMD.

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