CNG foray into NCR towns faces roadblock

The Hindu , Wednesday, December 29, 2004
Correspondent : Gaurav Vivek Bhatnagar
NEW DELHI, DEC. 28. Buoyed by Delhi's successful tryst with natural gas, which had immensely helped in bringing air pollution down, the Centre had allocated 0.7 million standard cubic metre of natural gas for the four satellite townships of Faridabad, Gurgaon, Noida and Greater Noida for residential, transport, commercial and industrial use, but the planned foray by Indraprastha Gas Limited into these cities has been stonewalled and thus delayed by the Uttar Pradesh and Haryana governments on the ground that they want competition in the "business''.

Paying scant regard to the fact that the Union Ministry of Petroleum and Natural Gas has been trying to spread the use of gas into the National Capital Region to ensure that the air pollution levels are brought down there as well, both the U.P. and Haryana Government have been talking the language of some Gujarat-based gas suppliers and delaying the project.

However, as the Bhure Lal Committee is already seized of the matter and the guidelines in the issue of natural gas usage -- even in the case of Delhi -- had mostly come from Supreme Court, Indraprastha Gas Limited is hoping that the matter would ultimately be settled in its favour.

The sole supplier of piped natural gas (PNG) and compressed natural gas (CNG) in Delhi, IGL is at present supplying gas to nearly 92,000 vehicles and 21,000 households in the Capital. Having laid a network of pipelines and 125 stations in Delhi, it wanted to expand its operations into the neighbouring townships. "For the purpose, we had carried extensive research and prepared detailed feasibility reports, material planning reports and detailed engineering designs,'' said a senior official.

With 0.7 mscm of gas per day with it, IGL intended supplying gas to 8,000 households in the first year itself. And in Phase I of the project lasting three years it is planning laying of 112.97 km of steel pipeline and 325.99 km of medium density poly ethylene pipeline in the four NCR townships for setting up 20 CNG stations. The entire Phase was to have cost Rs 166.38 crores while the projected cost for Phase II -- which would have been completed in a further two years -- was estimated at Rs 40.68 crores.

The official said since the CNG project in Delhi took off primarily on the back of public transport conversion to the mode on court orders, there was no problem of demand as vehicles alone accounted for 95 per cent of it. But in the case of the NCR townships, IGL is focussing more on residential, commercial and industrial units for sale of gas. It also wants sales tax subsidy on the lines of Delhi to boost sales of this cleaner fuel which is priced 10 per cent below competitive fuels.

"But the actual benefit to the consumer works out to be more than 10 per cent, especially in PNG since LPG cylinders are generally underweight and also there is some gas left in them when the consumer presumes them to be empty. So, the fuel gas bill of connected households actually works out around 40 per cent lower,'' the official noted. Likewise, pricing for industries would take into account the cost of furnace fuel.

However, while the response from the commercial and industrial units during the interactions has been positive, the official said, the delay in approval from the State Governments had been a dampener for the plans. "We do not want even a penny from them. All we need are assurances for land and right of way for the pipelines, but even there the concerned officials are dithering,'' said the official adding that some like the Principal Secretary (Environment) in the U.P. Government are, however, keen on getting the project moving for its benefits.

And so while on December 30, IGL would open its first two dispensing units at a Bharat Petroleum outlet in Sector 95 of Noida and at a Hindustan Petroleum filling station in Sector 12 of Noida to mark its entry on the fuel scene, it is awaiting approvals for taking in reality the Delhi model across the not-so-porous man-made borders.

 
SOURCE : The Hindu,Wednesday, December 29, 2004
 


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