Target for piped gas connections reduced

by news
March 20, 2015

Bangalore :The Petroleum and National Gas Regulatory Board (PNGRB) reduced the target for completing the project in Bangalore Urban and Rural districts, in order to make it technically viable for private investors.This move would further delay implementation of the ambitious Bangalore City Gas Distribution (CGD) network project,

The PNGRB, a Government of India (GoI) undertaking which had invited Expression of Interest (EoI) from private investors to take up the project in October last year, has been forced to modify the tender conditions following objections from probable bidders.The last date of bidding was, therefore, postponed to July 10, 2014 from February 9, 2014, official sources said.

About one lakh households of the estimated 20 lakh households have to be provided with piped gas connection within five years of the commencement of work.

The GAIL-KSIIDC joint venture had initially urged the Union Ministry of Petroleum and Natural Gas to entrust the responsibility to implement the project to it.

But the ministry refused to do so and decided to follow the bidding process.

The GAIL commissioned the Rs 5,000-crore Dabhol (Maharashtra)-Bidadi (near Bangalore) bulk gas pipeline project in February, 2013. But in the absence of the CGD network, the gas has largely remained unutilised.