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GAIL in trouble-IV: Role model
Jan 04:  The website carries here a classic case of how stakeholder interests have been managed by a pipeline construction company against the laying of a pipeline
8Quantitative analysis of the kind of job losses and impact on state GDP was documented by the pipeline company
8The total annual economic lost opportunity in case the pipeline was not built was highlighted not just in the midstream but also in the downstream segments
8The pipeline cost was segregated into different elements, from employee compensation to engineering to iron and steel pipe manufacturing and costs were further refined to capture only the spending that would occur in the specific states through which the pipeline would be traveling.
8Downstream costs were also calculated in terms of savings emerging to consumers with the purchase of gas
8There were a total of 536 parameters over which cost savings were divided up
8An economic cost estimation software was used to then fully capture the economic consequences.
8There could be two reasons why GAIL did not follow the cost-benefit approach: one could be that it was confident of using the administrative, law and order and legal routes to work for it, while the second reason could well be that such an analysis would have shown up the savings possible as not large enough for the states concerned. If it is the second reason, then there is cause for concern for the gas industry as a whole. A third reason could well be that no one in GAIL thought that there would ever be a need for such an exercise to appease stakeholder interests.
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