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Awaiting price reaction for this filing.
GAIL has informed the stock exchanges that its 1,702 km Mumbai-Nagpur-Jharsuguda Pipeline (MNJPL) project will be delayed by about three months, with completion now pushed from June 30, 2025 to September 30, 2025 on a progressive basis. The project cost has also been revised upward by Rs. 411.12 crore, taking the total cost to Rs. 8,255.37 crore, which is 5.24% higher than the originally approved cost of Rs. 7,844.25 crore. Delays are attributed to issues in the MSRDC utility corridor, pending forest and NBWL clearances, MoRTH permissions along NH-44, right-of-use (RoU) acquisition delays, and local resistance in certain stretches. The Board of Directors approved the revised schedule and cost on June 23, 2025.
Shareholders should note a modest 3-month delay in project commissioning and a 5.24% cost overrun, though the reasons are largely regulatory and land-related and largely outside the company's direct control. Revenue from the pipeline will be pushed back slightly, but the cost escalation is contained and unlikely to materially impact GAIL's overall financial position.