Lok Sabha Question No. 2095 (UNSTARRED), answered on 2026-02-12
Subject: Cost Escalation and Delays in Major GAIL (India) Limited Projects
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Shri Laxmikant Pappu Nishad

## LOK SABHA

## UNSTARRED QUESTION NO - 2095

TO BE ANSWERED ON 12 th  FEBRUARY, 2026

## Cost Escalation and Delays in Major GAIL (India) Limited Projects

† 2095 . SHRI LAXMIKANT PAPPU NISHAD:

## पेट Ō ोिलयम और Ůाक ृ ितक गैस मंũी

Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state: -

- a) the  names  of  major  projects  currently  being  implemented  by  GAIL  (India)  Limited  along  with  their originally approved completion dates and revised target dates, especially with reference to the MumbaiNagpur-Jharsuguda  (MNJPL)  Pipeline,  Srikakulam-Angul  Pipeline  and  the  petrochemical  project  at Usar, Maharashtra;
- b) the details of the originally sanctioned cost, the current revised cost and the percentage of cost escalation in respect of each of the said projects;
- c) the details of the major reasons for delays in projects such as forest and environmental clearances, right of way regulatory approvals, poor performance of contractors or other reasons, project-wise;
- d) whether time extensions have been granted to contractors due to delays and if so, the details of liquidated damages, imposed forfeiture of performance bank guarantees or any other penal action taken;
- e) whether accountability has been fixed for the delays and cost escalations; and
- f) whether  a  monitoring  and  penalty  or  incentive  mechanism  has  been  implemented  to  ensure  timely execution of the said projects in future, if so, the details thereof?

ANSWER

## पेट Ō ोिलयम और Ůाक ृ ितक गैस मंũालय मŐ राǛमंũी ( ŵी सुरे श गोपी )

## MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI SURESH GOPI)

(a) to (f) As per project monitoring portal (Pariyojana) of Ministry of Petroleum & Natural Gas, GAIL (India) Limited is executing 10 projects each costing Rs 500 crore & above with original project cost of Rs 29,054 crore. Out of these major projects, 7 projects are having both time and cost overruns and 3 projects are on schedule. Detail of projects with originally approved completion date, revised target date, originally sanctioned cost, current revised cost, percentage of cost escalation and reasons in respect of all  10  projects  including  Mumbai-Nagpur-Jharsuguda (MNJPL) Pipeline, Srikakulam-Angul Pipeline and the petrochemical project at Usar, Maharashtra are at Annexure.

GAIL  accords  Provisional  Time  Extensions  (PTEs)  only  to  ensure  continuity  of  work  and  avoid disruption to project progress. Such extensions are granted without prejudice to the final determination of  delays  and  do  not  absolve  the  contractor  of  his  responsibility.  GAIL  has  a  robust  Contract  and Procurement  framework  in  place  for  undertaking  a  comprehensive  analysis  at  the  time  of  contract closure. This mechanism ensures an objective assessment of delay attribution, covering both controllable and  uncontrollable  factors such  as delays  in statutory permissions  and  clearances,  site-specific constraints,  and  the  contractor's  performance.  The  evaluation  is  carried  out  in  line  with  established procedures and compliance required to maintain transparency, accountability, and contractual integrity. The contract framework also includes provisions for enforcing appropriate contractual remedies, which include imposition of liquidated damages, performance-related penalties, and forfeiture of the Contract cum Performance Bank Guarantee. Based on these contractual provisions, GAIL has levied a penalty of around Rs 124 crore on different contractors across various projects through project lifecycle.

## Annexure

Annexure referred to in reply to parts (a) to (f) in respect of the Lok Sabha Unstarred Question no. 2095 to be answered on 12.02.2026 regarding 'Cost Escalation and Delays in Major GAIL (India) Limited Projects'

|   SN | Project Details                                                                                  | Original date of Completion   | Revised date of Completion   |   Origina l Cost (Cr.) |   Revised Cost (Cr.) |   Cost Escalation (%) | Reason of Delay                                                             |
|------|--------------------------------------------------------------------------------------------------|-------------------------------|------------------------------|------------------------|----------------------|-----------------------|-----------------------------------------------------------------------------|
|    1 | 500 KTA PDH-PP Project, Usar, Maharashtra                                                        | Apr'25                        | Jun'26                       |                   8797 |                11256 |                    28 | Contractual issues, RoU issues                                              |
|    2 | Mumbai Nagpur Jharsuguda Pipeline Project, Madhya Pradesh, Maharashtra, Odisha and Chhattisgarh  | May'23                        | Feb'26                       |                   7844 |                 8255 |                     5 | Land Acquisition, Forest and Wildlife clearance, RoW and RoU issues         |
|    3 | Kochi - Koottanad - Bengaluru-Mangaluru Pipeline Project Ph-II, Karnataka, Kerala and Tamil Nadu | Dec'12                        | Mar'26                       |                   2915 |                 5909 |                   103 | RoW and RoU issues, Land Acquisition, Forest clearance, water body crossing |
|    4 | Srikakulam Angul Gas Pipeline Project, Andhra Pradesh and Odisha                                 | Jul'22                        | Jun'26                       |                   2658 |                 2810 |                     6 | RoU issues, Forest clearance                                                |
|    5 | C2/C3 Vijaipur Pata pipeline, Madhya Pradesh and Uttar Pradesh                                   | Jan'27                        | Jan'27                       |                   1792 |                 1792 |                     0 | NA                                                                          |
|    6 | Durgapur Haldia pipeline (Section 3B of JHBDPL project), West Bengal                             | Dec'20                        | Mar'26                       |                   1740 |                 2493 |                    43 | RoU issues, Fisheries issues                                                |
|    7 | Dhamra Haldia Pipeline Project, Odisha and West Bengal                                           | Nov'22                        | Mar'26                       |                   1031 |                 1125 |                     9 | RoU issues, Fisheries issues                                                |
|    8 | PP project Pata, Uttar Pradesh                                                                   | Jan'24                        | Dec'26                       |                    910 |                 1299 |                    43 | Contractual issues                                                          |
|    9 | Augmentation of DUPL-DPPL Pipeline, Maharashtra                                                  | Mar'28                        | Mar'28                       |                    844 |                  844 |                     0 | NA                                                                          |
|   10 | Gurdaspur Jammu Pipeline, Jammu & Kashmir (UT) and Punjab                                        | Jul'26                        | Jul'26                       |                    522 |                  522 |                     0 | NA                                                                          |

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