Bengal's green fuel terminal goes for a toss

The prospect of green fuel distribution in West Bengal is dwindling as grid building for distribution of natural gas has gone for a toss owing to inadequate gas production in KG basin and necessary license from the regulator is still due. GAIL—one of the stake holders of SPV formed for the natural gas distribution in Kolkata— is yet to come up with a concrete plan for the same.

The much talked about project, estimated to be worth over Rs 2000 crore, of the state is set to get delayed due to absence of gas and the required nod from Petroleum and Natural Gas Regulatory Board (PNGRB), the regulator for petroleum and natural gas. The SPV which was formed between GAIL, Hindustan Petroleum Corporation Limited (HPCL) and Greater Calcutta Gas Supply Corp (GCGSC) had applied for license in November, 2011 but it is yet to receive the nod.

“We are not sure when this project will be completed. Inadequate gas is the primary problem and the necessary nod from the regulator is still due,” said S Roychoudhury, CMD of HPCL.

He was in the city to attend a oil & gas seminar.As per the MoU that was signed in November 2011, HPCL and GAIL have 37% each in the special purpose vehicle (SPV) while the remaining 26% is with GCGSC.

“Once GAIL comes up with a viable plan with adequate gas supply, then only things can move forward. Another thing which is coming as a halt in this projects is the sour relations between Mamata Banerjee and the centre,” said an official of HPCL requesting annonimity.