Nov 23, 2011

1.5 lakh households to be supplied PNG


Gas Authority of India Limited (GAIL) Gas has been authorised by the sector regulator, Petroleum and Natural Gas Regulatory Board (PNGRB), for connecting 1.5 lakh domestic households through piped natural gas (PNG) in the country over a period of five years. The investment needs were likely to be met by its parent organisation, Gail.

Gas Gas is a 100 per cent subsidiary of the state-owned Gail India. Gail Gas has been authorised by PNGRB for implementing specific city gas distribution (CGD) projects in Kota (Rajasthan), Sonepat (Haryana), Meerut (Uttar Pradesh), and Taj Trapezium Zone besides the gas distribution network for Agra, said Prabhat Singh, director, marketing, Gail and director-in-charge, Gail Gas, talking to ToI.

Dewas was the first to implement it on Monday. Out of the total 170 million cubic metre (MCM) of natural gas being provided by various natural gas production units in the country per day, Gail was responsible for 120 MCM while National Fertiliser Ltd (NFL) was utilising the fuel to run its plant. There were a good number of other fertiliser companies that were relying on GAIL to meet their fuel requirement, said Singh.

Based on the success of Indraprastha Gas in New Delhi and Mahanagar Gas in Mumbai, Gail has now set up six more joint ventures for CNG projects in various cities, so as to fuel commercial vehicles. They are Avantika Gas (Indore), Bhagya Nagar (Hyderabad), Central UP Gas (Kanpur and Bareily), Maharashtra Natural Gas (Pune), Tripura Natural Gas (Tripura) and Green Gas (Lucknow and Agra). In fact, it has induced other entities to come into CGD project at different places.

Gujarat State Petroleum Corporation (GSPC) and Reliance are some of those entities that have also made their foray into the project, taking a cue from the success of the same project being undertaken by Gail Gas. In fact, British Gas has tied up with Gail Gas to venture into the business, said Singh.

In its bid for diversification of business, Gail Gas was also looking for allied retail business at its refuelling stations. It means that the company will be providing space for retailers to open their stores at the refuelling stations so as to facilitate the Gail Gas' customers to do shopping, while their vehicles were getting fuel from the stations.

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