The Hindu Business Line : AP Govt proposes creation of gas regulator, State-level boards

THE Andhra Pradesh Government is articulating a case for the creation of a Gas Regulatory Authority and State-level boards for optimal utilisation of gas reserves in the State.

It has also suggested certain amendments to the proposed Petroleum & Natural Gas Regulatory Bill slated to be taken up by the Centre.

The Bill seeks to regulate laying of gas pipelines in the country by issuing licences.

The State Chief Minister, Dr Y.S. Rajasekhara Reddy, has proposed to the Centre the proposal for creation of State Natural Gas Regulatory Board and for setting up state-level boards.

Meanwhile, the State has initiated talks with Gas Authority of India, Reliance and Gujarat Petroleum Corporation for the formation of a gas grid in the State.

According to a statement from the Chief Minister's office, given the huge gas reserves in the Krishna-Godavari (KG) basin, the creation of a state-level board will help push industrial promotion and connect all backward regions as well as cities and towns with a natural gas grid.

In a letter addressed to the Union Petroleum Ministry, the State Government said the proposed board should have the authority to give licences for city gas distribution and laying of pipelines within the State. The Government of India on the other hand could regulate inter-state pipelines through the Central Natural Gas Regulatory Board.

Dr Reddy pointed out that the State has sufficient reserves of natural gas in the KG basin and all efforts would be made to harness the potential for the overall economic development of the State, which will in turn enhance the GDP.

Consequently, the State Natural Gas Regulatory Board will be a corporate body comprising chairperson and members who would be appointed from among persons of eminence in the fields of natural gas industry and other sectors including consumer affairs.

The head office of the board would be in Hyderabad and regional offices spread in such places where the board thinks appropriate in view of the public interest and convenience. The State Government would also prepare a roadmap for the gas grid after conducting a detailed survey shortly.

Earlier, the Prime Minister, Dr Manmohan Singh, had agreed in principle to appoint a regulator for fixing the gas prices.

The State Government has requested the Centre for sanctioning of offshore liquefied natural gas terminal project to be completed in 12 months as an interim alternative solution for the upcoming 4-power projects with a capacity of 1499 MW under implementation during 10th plan in the State.

The Centre was urged to intervene in stabilising the power sector by addressing the issue of shortage of supply of gas to power projects and differential pricing of gas for power generation.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page