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Uniform tariff comes under fire from buyers-I: Rates to more than double for some users
Oct 03: GAIL's proposal for a unified tariff of Rs 68.mmbtu on GCV basis -- with 3% year-on-year escalation to be effective from April 1, 2018 -- for its cross-country pipelines has been greeted by a howl of protest from existing pipeline users.
8The gas major's proposal will almost triple the transportation tariff for the Dahej-Uran-Dhabol pipeline
8The price increase will be equally harsh for buyers out of the HVJ-GREP-DVPL pipeline
8Rates of other existing cross-country pipelines will go up too.
8What GAIL has proposed is to unify a total of seven cross-country pipelines but that wouldn't take up the tariff rate by much but for the inclusion of the controversial Jagdishpur-Haldia-Bokaro-Dhamra Pipeline (JHBD), whose tariff rate, if independently calculated, come to a high Rs 173/mmbtu.
8The unified tariff rate will bring down the rate of transportation of the JHBD from Rs 173/mmbtu to a mere Rs 68/mmbtu.
8Clearly, there is a tradeoff from the unified tariff mechanism: existing buyers of gas from currently operational pipelines will pay much more whereas those dependent on the under-construction JHBD will gain the most
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