Maha plans to invest Rs 8,000 cr in gas grid

Maharashtra has also jumped on the bandwagon to develop a gas grid. The state government plans to invest nearly Rs 8,000 crore in over 2,000 km of a gas infrastructure and transportation grid.

The state-run Maharashtra Industrial Development Corporation (MIDC) is the nodal agency for the project. The gas grid is being planned for an assured and long-term supply to various existing and upcoming small and mega gas-based power projects in the state.

The state government proposes to seek a viability gap funding of Rs 2,500-3,000 crore under the public-private partnership initiative.

Gujarat has already completed over 1,200 km of a 2,000-km gas grid. Andhra Pradesh has also launched a project for development of gas transportation infrastructure.

MIDC has already finalised talks with gas transporter GAIL India for the formation of a joint venture (JV). It is proposed that the JV would transport and organise bulk supply in the vicinity of the existing gas pipeline that passes through a section of the Konkan region. A pipeline has already been constructed by GAIL India between Panvel and Dabhol, which supplies gas for the Dabhol power project.

Besides these, MIDC and GAIL India would also jointly bid for other areas in the Konkan region for gas supply. The JV would participate in the bidding process mandated by the Petroleum and Natural Gas Regulatory Board (PNGRB). MIDC and GAIL India are looking at covering gas supply in the region.

The gas grid is being planned in view of assured and long-term supply to various existing and upcoming small and mega gas-based power projects in the state.

A state government official told Business Standard: “MIDC will also form similar JVs with Reliance Industries and other companies for similar purposes. The proposed JVs would look at gas transportation and grid in the remaining part of Maharahstra, including Vidarbha and Marathwada.”

The official added, in certain areas, the gas supply will be allowed without going in for a competitive bidding. However, for other areas, the JV would participate in competitive bidding.

The grid would be able to supply gas to MahaGenco’s existing 850-Mw urban project. Additional gas can also be organised for the proposed 1,500-Mw expansion of the urban project. Moreover, a 1,600-Mw gas-based power project is being planned in Latur, situated in the vicinity of Reliance pipeline.

Further, MIDC plans to rope in IndianOil Corporation for setting up CNG terminals across the state.

A Mumbai-based analyst, who did not want to be named, said Maharashtra could not be compared with Gujarat, which had already got the authorisation for the grid. However, Maharahstra could not bypass PNGRB’s stipulated norm of competitive bidding.