The Hindu Business Line : Adani Energy can resume city gas projects in UP

Kolkata, Feb. 14 Breaking the seven-month-long impasse, the Mayawati Government in Uttar Pradesh has finally allowed Adani Energy to resume its city gas distribution projects in Lucknow, Khurja and Noida.

According to sources, in a meeting convened by the State infrastructure and industrial development commissioner on January 31, the State government has allowed Adani Energy to resume the CGD project at their “own risk and cost” and subject to requisite approval by the Petroleum and Natural Gas regulatory Board and other central authorities.

Adani Energy launched projects to create CGD network in UP as per the no-objection certificates (NOC) issued by the erstwhile Mulayam Singh’s government and without any Central approval. Project work has particularly progressed in Lucknow and Noida where the company has claimed to have invested close to Rs 100 crore in creating the network for supply of compressed natural gas (CNG) and piped natural gas (PNG).

Work had come to a standstill soon after the Mayawati-led BSP government assumed office in May 2007. The new State government not only questioned the validity of the NOCs granted to Adani Energy but paved way for the Central nominee Green Gas Ltd (GGL) and Indraprastha Gas Ltd (IGL) to resume CGD projects in Lucknow and Noida respectively.

Both GGL and IGL and subsidiaries of GAIL and were entrusted by the Centre to supply clean fuel in Lucknow and Noida. Both the projects were practically stalled by Mr Mulayam’s government.

Meanwhile, things are not going hunky dory for IGL. On January 18, the company was asked to stop work for laying 16-km-long pipeline network for CNG and PNG supplies in Noida. The company was reportedly targeting opening of online CNG station and PNG supply to households beginning March 31, 2008.

The company has also received allocation of 0.2 mmscmd of APM gas for the purpose. Though the ban was lifted following January 31 meeting, IGL now feels that the sudden disruption in work may delay the project deadline by three months to June 2008.

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