The Hindu Business Line : Indraprastha Gas mulls supply to 4 more cities

IGL plans to set up city gas distribution networks in Noida, Gurgoan, Faridabad and Ghaziabad, Mr A.K. De, Managing Director, IGL, told Business Line.

The company will spend close to Rs 120 crore on setting up these networks. A detailed feasibility report on the projects is expected by next month.

"We will have our hands full with work for the coming 3-4 years. Detailed feasibility reports are being prepared for drawing up plans for these four cities," Mr De said.

IGL will set up CNG stations for vehicles along with supplying piped gas to households as well as to industrial and commercial customers.

"CNG should be available in the four cities in the next year. But setting up entire networks for piped natural gas and CNG stations will take around two years," Mr De said.

IGL, in which the Delhi Government holds 5 per cent stake, has been recently listed on stock exchanges. It will restrict itself to cities in the National Capital Region (NCR) and may not head for other projects in cities such as Kanpur, Agra, Lucknow or Bareilly. IGL's promoters GAIL (India) and BPCL will supply gas to these cities on their own or through new joint ventures.

The Supreme Court had issued a directive to introduce CNG in 11 Indian cities, in order to control pollution levels, through its April 5, 2002 order. These include Agra, Lucknow, Jharia, Kanpur, Varanasi, Faridabad, Patna, Jodhpur and Pune, apart from Delhi and Mumbai.

IGL will focus on the NCR, while Mahanagar Gas Ltd (promoted by GAIL, British Gas and Maharashtra Government) plans to supply CNG to Mumbai and Thane.

The other nine projects promise to become interesting contests between PSU companies GAIL, BPCL HPCL and even IOC and private sector companies such as Reliance, Essar, etc.

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