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Gas distribution project issues

Pratim Ranjan Bose

Kolkata, July 6 With the petroleum regulator in place, Indraprastha Gas Ltd (IGL) may soon revive its campaign against the approvals granted by Uttar Pradesh and Haryana governments to proposed city gas distribution projects undertaken by Gujarat Adani Energy Ltd (GAEL) and Haryana City Gas Distribution Ltd in Noida, Faridabad and Gurgaon.

GAEL is setting up distribution network in Noida and Faridabad.

Haryana City Gas Distribution Ltd allowed entry in city gas distribution business in Gurgaon.

IGL is a joint venture between GAIL and BPCL.

The Centre had previously nominated the company for supply of compressed natural gas and piped natural gas in the capital region, including all three locations and allocated gas supply accordingly.

“We will meet the petroleum regulator, Mr Labayendu Mansingh, shortly. Issues pertaining to such State approvals granted to other companies in Noida, Faridabad and Gurgaon may come up in our discussion,” Mr Om Narayan, Managing Director of IGL, told Business Line. IGL’s job has apparently become easier at Noida in Uttar Pradesh, where the new Government is already reviewing the approvals granted to GAEL in Lucknow and Noida.

In Lucknow, GAEL was allowed entry in city gas distribution overruling the Central nominee Green Gas Ltd. GAEL – a subsidiary of Adani Enterprises - on its part has already invested in creating pipeline network in both the cities and was hopeful to open the CNG (compressed natural gas) dispensing stations in next three months in Noida.

When contacted a GAEL official said: “We are currently investing roughly Rs 100 crore in creating the supply infrastructure in Lucknow, Noida and Khurja in Uttar Pradesh, Faridabad in Haryana and, Udaipur and Jaipur in Rajasthan.

“We are hopeful to commission the projects at the earliest.”

Haryana City Gas Distribution could not be contacted for comments.

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