Wednesday, 14 October 2015

The silence of the lambs: PNGRB reiterates Rs 5 crore fine on GAIL for project slippage

The PNGRB had issued an order today where it reiterated the encashment of 25% of the Performance Bond Guarantee (PBG) for GAIL's inability to complete financial closure on a pipeline project despite the fact that 42 months had gone by.
8This is a lot of money by any yardstick; The penalty was Rs five crore on a PBG of Rs 20 crore.
8As usual GAIL behaved like the spoilt child and refused to abide by the directions of the PNGRB and ran to the Delhi High Court for a stay order.
8The court however refused to play ball and gave GAIL one week to convince the PNGRB why the fine should not be imposed.
8Eventually, the GAIL brass headed by a director and two executive directors turned up to plead before the Board for a repreive.
8Smelling sweet revenge, the Board decided to stick to its decision.
8What is more GAIL was told to ensure that the PBG be reinstated to the Rs 20 crore before forward.

8Comment: The PNGRB's orders must also be more clear. Though the fine has been imposed, the project itself finds no mention. Then again, it talks of a September 30 order that imposed the fine in the first place but the order itself has not been uploaded. Someone in PNGRB is goofing up and he must be hauled up and told to do his job.

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