Press Releases

Gas supplies to IPCL
GAIL (India) Limited
(New Delhi, February 21, 2006.)

New Delhi, February 21, 2006.IPCL has not signed the revised Gas Supply Agreement with GAIL after the Government Pricing Order which came into effect from July 1, 2005.

Inspite of the continuous efforts by GAIL during the last several months, IPCL has not come forward to sign the revised agreement on the same terms and conditions as agreed to by other customers.

Citing that GAIL cannot supply in absence of a valid agreement, GAIL sent a notice to IPCL in early February 2006 that gas supplies will be disconnected if IPCL does not sign the Agreement within a week’s time.

IPCL had sought some more time to sort out the matter at their end and in the meantime, had offered Security through a Bank Guarantee against the short payment, which GAIL has consented to.