Petroleum & Natural Gas Regulatory Board (PNGRB) has asked for some enabling sops from the Odisha government for building city gas distribution (CGD) infrastructure in the state.
The board has urged the state government to make available land at concessional rates to create CGD infrastructure like pipelines. It has also suggested to cap the applicable VAT (Value Added Tax) rate on CNG (Compressed Natural Gas) or PNG (Petroleum Natural Gas) at rates not exceeding subsidized LPG.
"The state government has received the letter from the PNGRB on roadmap for CGD network. We have sought the views of the department of housing & urban development", said a senior state government official.
Over the next five years, Rs 600 crore is proposed to be invested in Odisha on development of CGD infrastructure.
City Gas Distribution (CGD) projects in Bhubaneswar and Cuttack are being taken up in parallel with the Jagdishpur-Haldia-Bokaro-Dhamra Natural Gas Pipeline (JHBDPL), known as 'Pradhan Mantri Urja Ganga'. Total expenditure for CGD projects in Bhubaneswar and Cuttack is estimated at Rs 1700 crore of which Rs 400 crore is tipped to be spent over the next three to five years.
Initially, natural gas will reach Bhubaneswar in special containers called cascades which will be transported by road from Vijaywada in Andhra Pradesh. Later, natural gas will be supplied through the JHBDPL.
The pipeline is presently under construction and likely to be completed by 2019.
CNG is one of the most environment-friendly fuels as compared to conventional fuels because it has no impurities such as sulphur or lead. It is safe because it is lighter than air and rises up in case of leakage. Moreover, it is unlikely to ignite because of high ignition temperature of approximately 585 degree Celsius. Also, it is economical compared to conventional fuels.