The Hindu Business Line : City gas distribution: Adani to seek nod for rollout

Overseas plans
Company has held initial talks with Myanmar, to make formal proposal soon
Studying entry prospects into Nigeria, Iran and Sri Lanka

Pratim Ranjan Bose

Kolkata, Nov.6 Adani Energy, the city gas distribution (CGD) arm of Adani Enterprises, may approach the Petroleum and Natural Gas Regulatory Board within next two-three weeks seeking permission to roll out CGD projects in 50 cities in India, its President (gas business), Mr Rajeev Sharma, told Business Line. Applications will also be submitted this week for regularising CGD projects already undertaken in eight cities in India.

Entry into Myanmar

According to a company official, Adani Energy is exploring options of entering the CGD business at Yangon (formerly Rangoon) and the capital city of Nay Pyi Taw in Myanmar. The company has already held initial discussions with the Myanmar authorities in this regard and will approach them with a formal proposal “very soon”.

Prospects of entering into the CGD business in Nigeria, Iran and Sri Lanka are also under study.

“We are planning a national roll out of our CGD business and may approach the Petroleum and Natural Gas Regulatory Board (PNGRB) in the next 2-3 weeks for permission to do business in 50 cities across the country,” Mr Rajeev Sharma, Adani Group President (gas business), told Business Line.

Existing projects

On its existing projects in Ahmedabad and Vadodara in Gujarat; Noida, Khurja, and Lucknow in UP; Faridabad in Haryana; and Jaipur and Udaipur in Rajasthan, Mr Sharma said the company is expected to apply to the PNRGB for necessary approvals soon, based on the approvals from the respective State Governments.

The board issued a notice last week asking the companies which had entered into CGD business without Union Government approval to apply within 30 days for due regularisation. Adanis have entered into the business in all eight locations depending on approvals by the State Governments concerned. While it is already selling compressed natural gas (CNG) and piped natural gas (PNG) in Ahmedabad and Vadodara, projects are in various stages of completion in the other six cities.

Stalled in UP

Project work has been stalled in UP since the change over of the Government.The new government led by Ms Mayawati has questioned the validity of the permissions granted previously.

Adani Energy posted a turnover of approximately Rs 170 crore during the last fiscal.