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CUGL offers PNG supply for industrial usage

Vishnu Pandey  |  New Delhi/ Kanpur 

Central Uttar Pradesh Gas Ltd (CUGL) is set to offer a new solution to the power woes plaguing Kanpur industrialists.

The agency has chalked out plans for supplying piped natural gas (PNG) to power-starved units of the city and other industrial areas of central Uttar Pradesh.

CUGL Marketing Head Praveen Aggrawal told Business Standard that the agency was working on a procedure to supply PNG for industrial purposes aimed at boosting the industrial production of over 4,000 small and medium industrial units. These units, spread across the city, produce plastics, leather goods and packaged foods etc.

“The proposal has been cleared from the parent organization of CUGL, Bharat Petroleum Corporation Ltd (BPCL) and now the implementation and marketing process is being carried out,” he said.

According to the Indian Industries Association Regional Head Sunil Vaishya, the small and medium enterprises (SMEs) of the city have witnessed a production loss of over Rs 500 crore this summer.

“The trader and business community of the city is confused regarding continuing production in the city. Power cuts, accompanies with harassment from pollution control officials, have demoralised the industrialists,” he said. CUGL has tried to address the power problem by supplying PNG for industrial purposes. The initiative comes in compliance of the Supreme Court directive for nine most polluted cities of the country including Kanpur.

The agency, being run as a joint venture of Gas Authority of India Ltd (GAIL) and BPCL, is currently supplying the gas to over 8,000 households in the city.

The use of CNG as a domestic and industrial fuel is understood to be non-polluting and eco-friendly. According to CUGL officials, CNG can be used for cooking, running air conditioners, running generators and heating furnaces for industrial production.

However, the industrialists are somewhat apprehensive of the benefits accruing from the new fuel. Rupani footwears Director R Singh said that the cost of installing apparatus for PNG utilisation was quite heavy, starting from Rs 2 lakh while it still remained uncertain whether this fuel would be able to enhance the already slim profit margins.

Still, some of the local biscuit manufacturers have agreed to try out the gas as an industrial fuel.

Explaining the advantages of using PNG over other fuels, Aggrawal said that apart from being environment-friendly, it was a safer fuel as it was lighter than air and obviated the chances of catching fire.

“We have been able to convince the local food products manufacturers by demonstrating the safety rating of PNG as a fuel. The gas can also be used to run motor-vehicles in an environment-friendly manner,” he added.

First Published: Sat, September 05 2009. 00:53 IST