**Executive Summary**
This document is a response to Lok Sabha Unstarred Question No. 2095, concerning cost escalation and delays in major projects undertaken by GAIL (India) Limited. The answer, provided on February 12, 2026, outlines the status of ten GAIL projects, detailing approved and revised costs, completion dates, reasons for delays, and penalties levied. It indicates that Provisional Time Extensions (PTEs) are granted to maintain project continuity.
**Key Points / Main Content**
* **Project Overview:**
* GAIL (India) Limited is executing ten major projects, each costing Rs 500 crore or more, with an original project cost of Rs 29,054 crore.
* Seven projects have both time and cost overruns, while three are on schedule.
* Detailed information on each project, including originally approved completion date, revised target date, originally sanctioned cost, current revised cost, percentage of cost escalation and reasons is included in the annexure.
* **Time Extensions:**
* GAIL accords Provisional Time Extensions (PTEs) to ensure work continuity without prejudice to final delay determination.
* PTEs do not absolve contractors of their responsibility.
* **Delay Attribution and Penalties:**
* GAIL has a framework for comprehensive delay analysis, considering both controllable and uncontrollable factors.
* The framework includes provisions for contractual remedies like liquidated damages and performance penalties.
* GAIL has levied penalties of approximately Rs 124 crore on different contractors across projects.
* **Annexure Details**
* 10 projects are detailed
* Original completion dates range from April 2025 to March 2028
* Revised completion dates range from February 2026 to December 2026
* Cost escalation ranges from 0 to 103%
* Common reason for delays: RoU issues, Contractual issues, Land Acquisition, Forest and Wildlife Clearance.
**Impact Analysis**
**GAIL (India) Limited**
* **Impact:** Subject to scrutiny regarding project delays and cost escalations. Implementing mechanisms to address delays and manage costs effectively. Liable for ensuring project continuity.
* **Action Required:** Continue to execute projects while adhering to the established framework for delay analysis and contract enforcement. Transparently manage and report on project progress.
**Contractors**
* **Impact:** Subject to potential penalties (liquidated damages, performance-related penalties) for project delays. Responsibility for project execution and meeting deadlines.
* **Action Required:** Adhere to contractual obligations and project timelines. Proactively address potential delays and communicate issues transparently to GAIL.
**Ministry of Petroleum & Natural Gas**
* **Impact:** Responsible for overseeing and monitoring the progress of GAIL's projects. Accountable to Lok Sabha for project outcomes.
* **Action Required:** Monitor GAIL's project execution and ensure adherence to regulations and guidelines. Address concerns raised in the Lok Sabha question.
Key Entities Referenced
GAIL (India) Limited: The major entity undertaking the projects detailed in the question.
Ministry of Petroleum and Natural Gas: The ministry responsible for answering the questions about GAIL's projects.
Mumbai–Nagpur-Jharsuguda (MNJPL) Pipeline: A major pipeline project by GAIL specifically mentioned as an example.
Srikakulam-Angul Pipeline: Another major pipeline project by GAIL specifically mentioned as an example.
Usar, Maharashtra: The location of a petrochemical project by GAIL, an example project.
LOK SABHA
UNSTARRED QUESTION NO - 2095
TO BE ANSWERED ON 12th FEBRUARY, 2026
Cost Escalation and Delays in Major GAIL (India) Limited Projects
† 2095. SHRI LAXMIKANT PAPPU NISHAD:
पेट(cid:332)ोिलयम और (cid:366)ाकृ ितक गैस मं(cid:361)ी
Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state: -
a) the names of major projects currently being implemented by GAIL (India) Limited along with their
originally approved completion dates and revised target dates, especially with reference to the Mumbai–
Nagpur–Jharsuguda (MNJPL) Pipeline, Srikakulam–Angul Pipeline and the petrochemical project at
Usar, Maharashtra;
b) the details of the originally sanctioned cost, the current revised cost and the percentage of cost escalation
in respect of each of the said projects;
c) the details of the major reasons for delays in projects such as forest and environmental clearances, right
of way regulatory approvals, poor performance of contractors or other reasons, project-wise;
d) whether time extensions have been granted to contractors due to delays and if so, the details of liquidated
damages, imposed forfeiture of performance bank guarantees or any other penal action taken;
e) whether accountability has been fixed for the delays and cost escalations; and
f) whether a monitoring and penalty or incentive mechanism has been implemented to ensure timely
execution of the said projects in future, if so, the details thereof?
ANSWER
पेट(cid:332)ोिलयम और (cid:366)ाकृ ितक गैस मं(cid:361)ालय म(cid:336) रा(cid:475)मं(cid:361)ी
((cid:373)ी सुरेश गोपी)
MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS
(SHRI SURESH GOPI)
(a) to (f) As per project monitoring portal (Pariyojana) of Ministry of Petroleum & Natural Gas, GAIL
(India) Limited is executing 10 projects each costing Rs 500 crore & above with original project cost of
Rs 29,054 crore. Out of these major projects, 7 projects are having both time and cost overruns and 3
projects are on schedule. Detail of projects with originally approved completion date, revised target date,
originally sanctioned cost, current revised cost, percentage of cost escalation and reasons in respect of
all 10 projects including Mumbai–Nagpur–Jharsuguda (MNJPL) Pipeline, Srikakulam–Angul Pipeline
and the petrochemical project at Usar, Maharashtra are at Annexure.
GAIL accords Provisional Time Extensions (PTEs) only to ensure continuity of work and avoid
disruption to project progress. Such extensions are granted without prejudice to the final determination
of delays and do not absolve the contractor of his responsibility. GAIL has a robust Contract and
Procurement framework in place for undertaking a comprehensive analysis at the time of contract
closure. This mechanism ensures an objective assessment of delay attribution, covering both controllable
and uncontrollable factors such as delays in statutory permissions and clearances, site-specific
constraints, and the contractor’s performance. The evaluation is carried out in line with establishedprocedures and compliance required to maintain transparency, accountability, and contractual integrity.
The contract framework also includes provisions for enforcing appropriate contractual remedies, which
include imposition of liquidated damages, performance-related penalties, and forfeiture of the Contract
cum Performance Bank Guarantee. Based on these contractual provisions, GAIL has levied a penalty of
around Rs 124 crore on different contractors across various projects through project lifecycle.Annexure
Annexure referred to in reply to parts (a) to (f) in respect of the Lok Sabha Unstarred Question no. 2095 to be
answered on 12.02.2026 regarding ‘Cost Escalation and Delays in Major GAIL (India) Limited Projects’
Original Revised Origina Revised Cost
SN Project Details date of date of l Cost Cost Escalation Reason of Delay
Completion Completion (Cr.) (Cr.) (%)
500 KTA PDH-PP Contractual
1 Project, Usar, Apr’25 Jun’26 8797 11256 28 issues, RoU
Maharashtra issues
Mumbai Nagpur Land Acquisition,
Jharsuguda Pipeline Forest and
2 Project, Madhya May’23 Feb’26 7844 8255 5 Wildlife
Pradesh, Maharashtra, clearance, RoW
Odisha and Chhattisgarh and RoU issues
RoW and RoU
Kochi - Koottanad -
issues, Land
Bengaluru-Mangaluru
Acquisition,
3 Pipeline Project Ph-II, Dec’12 Mar’26 2915 5909 103
Forest clearance,
Karnataka, Kerala and
water body
Tamil Nadu
crossing
Srikakulam Angul Gas RoU issues,
4 Pipeline Project, Andhra Jul’22 Jun’26 2658 2810 6 Forest clearance
Pradesh and Odisha
C2/C3 Vijaipur Pata
pipeline, Madhya
5 Jan’27 Jan’27 1792 1792 0
Pradesh and Uttar
NA
Pradesh
Durgapur Haldia RoU issues,
pipeline (Section 3B of Fisheries issues
6 Dec’20 Mar’26 1740 2493 43
JHBDPL project), West
Bengal
Dhamra Haldia Pipeline RoU issues,
7 Project, Odisha and Nov’22 Mar’26 1031 1125 9 Fisheries issues
West Bengal
PP project Pata, Uttar
8 Jan’24 Dec’26 910 1299 43
Pradesh Contractual issues
Augmentation of
9 DUPL-DPPL Pipeline, Mar’28 Mar’28 844 844 0
Maharashtra NA
Gurdaspur Jammu
Pipeline, Jammu &
10 Jul’26 Jul’26 522 522 0
Kashmir (UT) and NA
Punjab
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