Petro board to identify 300 cities for gas networks

The board plans to reduce the period for laying city gas pipelines.

The Petroleum and Natural Gas Regulatory Board is finalising a list of around 300 areas for allotting the rights to develop city gas distribution networks through a bidding process.

The authority, in an attempt to step up rollout of city gas networks, plans to offer 8-10 new areas for bidding every month from the third round of bidding for city gas distribution. It has already sought a presentation from state-run GAIL and Reliance Industries (RIL).

“There is a lot of pressure from state governments for laying gas distribution networks. We also want to expedite the same and so decided to identify areas and invite bids,” said a senior PNGRB official.

The board plans to reduce the five-year period for laying city gas pipelines to three years and is also looking at addressing the issue of availability of gas.

“We have approached the Directorate General of Hydrocarbons for certified gas deposits in the country. We will identify cities that have government clearance for pipelines. Priority will be given to cities that will have assured gas supplies,” said the official.

Under the second round, the bidding process for seven cities, Yanam, Shahdol, Rajahmundry, Ghaziabad, Chandigarh, Jhansi and Allahabad, is on.

In the first round, which concluded in March 2009, bids were called for six cities, namely, Kota, Dewas, Sonepat, Meerut, Kakinada and Mathura. While the bids have been opened, the regulator has not awarded the letters of intent due to a case in the Delhi High Court in which its right to award rights for city gas has been challenged.

The Delhi High Court had in August restrained the board from issuing any licence for retailing CNG and piped gas in cities after the government said that Section 16 of the PNGRB Act had not been notified, leaving the board with no powers to issue authorisation for city gas projects and laying gas pipelines. The case will come up for hearing on September 10.