20 districts in race to get piped gas projects

Joint Secretary to the Ministry of Petroleum and Natural Gas Ashish Chatterjee having a word with Chief Secretary Shailendra Kumar Joshi during the 9th CGD bidding round road show in Hyderabad on Tuesday.

Joint Secretary to the Ministry of Petroleum and Natural Gas Ashish Chatterjee having a word with Chief Secretary Shailendra Kumar Joshi during the 9th CGD bidding round road show in Hyderabad on Tuesday.   | Photo Credit: Nagara Gopal

PNGRB has initiated the bidding round for 174 districts across the country

Piped natural gas on tap for households, CNG supplies for automobiles and an assured fuel feedstock availability for industries across as many as 20 districts of Telangana may come true by October 2020 if the City Gas Distribution (CGD) projects mooted by regulator PNGRB progress as expected.

The districts, compressed into six Geographical Areas for the purpose of the projects, figure in the 9th CGD bidding round that in itself is the biggest such exercise in the country consisting of 86 GAs covering 174 districts (18 of them partly) in 22 States and Union Territories.

At present, Hyderabad is the lone area in the State having access to natural gas supplies. A total of 7,743 households have access to PNG and there are 33 CNG dispensing facilities in the city. Bhagyanagar Gas Limited, the company behind natural gas supplies to Hyderabad, proposes to provide PNG to a total of 45,000 households and add seven CNG facilities. So far, 36 entities had been authorised to operate 91 GAs in the country, including through the previous eight bidding rounds. Three districts, which have been morphed into one GA, in Andhra Pradesh figure in the current bidding round.

Previously, CGD had been authorised for five districts in the two neighbouring States.

These details were shared by officials of the Petroleum and Natural Gas Regulatory Board and Bhagyanagar Gas at a roadshow for the bidding round for the CGD projects by PNGRB.

Economic viability

In a media interaction, PNGRB Member Satpal Garg said the estimated investment in each GA ranges between ₹ 300-500 crore and as many as 2,000 jobs are created.

Over a period of eight years, ₹ 70,000 crore is the total investment on the CGD projects across the country.

To a query, another Member S.Rath said he was hopeful of better response from prospective investors to the CGD projects in the State as the economic viability of such projects had increased in the backdrop of an improved industrial climate.

Addressing the roadshow, Telangana Chief Secretary S.K.Joshi said CGD projects were poised to be a big boom for the consumers.

He also underscored the need for those engaged in the project implementation to ensure that the inconvenience caused by the work is minimal. Joint Secretary to Union Ministry of Petroleum and Natural Gas Ashish Chatterjee said the Centre is committed to providing the clean fuel.