New Delhi: India will see an investment of about Rs 1.2 lakh crore in the roll out of city gas network in almost 300 districts by 2030 as a massive expansion is planned for CNG dispensing stations and pipelines supplying cooking gas to household kitchens, Oil Minister Dharmendra Pradhan said Monday.
With a licence to retail CNG and piped gas to household kitchens given out for 136 geographical areas or GAs in the last one year, the coverage of city gas network would be 70 per cent of country’s population, Dharmendra Pradhan stated while speaking at an event organised to mark the commencement of work on 50 GAs awarded in the 10th bid round to firms such as Indian Oil Corp (IOC), Adani Gas and Bharat Gas earlier this year.
“Five years ago, city gas distribution (CGD) network spanned 34 GAs and now it has expanded to 228 GAs covering 406 districts,” Dharmendra Pradhan told the gathering.
CNG stations retailing the environment-friendly fuel to automobiles has expanded from 938 (five years ago) to 1,769 and will further be expanded to 10,000 by 2030, Pradhan said. He added that CNG-run vehicles are expected to reach a total figure of two crore, up from about 34 lakhs now.
“Household kitchens getting piped cooking gas has doubled to nearly 52 lakh and licences awarded would take the number to five crore by 2030,” Pradhan further stated.
Oil regulator Petroleum and Natural Gas Regulatory Board (PNGRB) has, in one year, awarded licences for setting up city gas distribution networks in 136 GAs. While Rs 70,000 crore investment was committed in 86 GAs awarded in the ninth city gas bid round in August last year, another Rs 50,000 crore was committed in the 50 GAs awarded in the 10th round in March this year.
“The investment proposed is about Rs 1.2 lakh crore,” Dharmendra Pradhan informed. “Less than 20 per cent of the population was covered by city gas distribution network in 2014 and now after award of 10th bid round, this will reach 70 per cent.”
The massive expansion of city gas distribution network is a part of government efforts to raise the share of natural gas in the energy basket to 15 per cent by 2030 from current 6.2 per cent. Natural gas is cleaner and environment-friendly fuel and is intended to replace some of the polluting coal and liquid fuels consumed currently.
“As many as 225 bids from 25 entities were received up to February 5, 2019 – the bid closing date (for the 10th round). And the PNGRB finalised the bids in a record time of 21 days,” PNGRB chairman DK Sarraf said.
Prior to this, CGD licences had been given for 178 GAs covering 280 districts (263 complete and 17 part) spread over 26 states and UTs. These covered about 50 per cent of India’s population (as per 2011 census) and 35 per cent of its geographical area.
State-owned IOC won licences to retail gas in 10 cities mostly in Bihar and Jharkhand, while HPCL won rights for nine towns in the 10th city gas bid round. HPCL, a subsidiary of state-owned Oil and Natural Gas Corp (ONGC), won licences to retail CNG to automobiles and piped natural gas to households in nine cities in Uttar Pradesh and West Bengal. A consortium of LNG Marketing Pte Ltd and Atlantic Gulf & Pacific Company of Manila Inc won rights for nine cities in Andhra Pradesh, Karnataka, and Kerala.
Gujarat Gas Ltd won rights for six cities, while state gas utility GAIL India’s unit GAIL Gas Ltd won rights for four. Indraprastha Gas Ltd and Torrent Gas won rights for three cities each, while Adani Gas and Bharat Gas Resources Ltd, a subsidiary of state-owned Bharat Petroleum Corp Ltd (BPCL), bagged two cities each.
PTI
