New Delhi: Natural gas processing and distribution major GAIL has terminated a contract given to IL&FS for laying pipeline in Bokaro-Durgapur section due to poor project progress.

The company in a regulatory filing to the BSE on Wednesday said that the Bokaro-Durgapur section (124 km) is now re-tendered and awarded to three different contractors to expedite construction efforts.

Besides, GAIL also informed that the project consultant, Engineers India Ltd, was replaced by Metallurgical & Engineering Consultants (India) Ltd for overseeing the project activities in this crucial stretch.

"In a swift move to safeguard project schedule of the Pradhan Mantri Urja Ganga natural gas pipeline to eastern India states, GAIL (India) Ltd as the owner and operator of the project under execution has offloaded the pipe laying contract from IL&FS due to poor project progress driven on account of acute financial crisis," GAIL said in a statement.