M C MEHTA Vs. UNION OF INDIA

JUDGEMENT

(1.) This application has been filed by the Gas Authority of India Limited (for short 'GAIL') for the following reliefs:

(2.) The first relief concerns Zone-I and the second relief conceerns Zone-II and III in the city of Agra. We shall first deal with Zone-I and thereafter with Zone II and III. Zone I.

(3.) On 3-4-1998, this Court directed the GAIL that it should start supply of Natural Gas to the Industries in Zone-I from July, 1998 so as to make available gas to the specified industries by December, 1998. It is now stated by GAIL that till December, 1998, 115 consumers out of 168 (referred to the order of this Court dated 30-12-96) alone had contacted GAIL for supply of natural gas. Other industries in Zone-I did not contact GAIL. It was stated that GAIL had made gas available in April, 1998 to its first consumer in May, 1998 and that by September, 1998, GAIL had completed gas pipeline network to supply gas to all the 115 consumers with whom it had entered into a contract in Zone-I. The complaint is that 79 out of these 115 consumers are not coming forward in Zone-I and are cupola based iron foundries. The rest are non cupola. All these 115 had given an undertaking earlier to receive natural gas from GAIL. These 79 industries have been awaiting the technology to be developed by the National Metallurgical Laboratory (hereinafter called the 'NML') for conversion to natural gas. GAIL feels that there is likelihood of delay in the drawal of gas by the 79 cupola based iron foundries in Zone-I by the target dated 31-12-1998. Only 4 cupola based - customers are likely to draw Gas by December, 1998.