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Hon’ble Prime Minister laid the foundation stones for CGD projects in the State

Ministry of Petroleum and Natural Gas

 &

Petroleum and Natural Gas Regulatory Board

10th Bidding round launched for CGD projects in the state

by Suman Gupta

Mumbai, November, 2018: Hon’ble Prime Minister Shri Narendra Modi today laid the foundation stones for City Gas Distribution projects in 63 Geographical Areas across India, including five in Mumbai, heralding the availability of convenient and environment-friendly natural gas for residents.

The foundation stones for the GAs, awarded by Petroleum & Natural Gas Regulatory Board (PNGRB), was laid by Hon’ble Prime Minister at a programme in Vigyan bhawan in New Delhi in the presence of Hon’ble Minister of Science & Technology, Earth Sciences and Environment, Forest & Climate Change Dr. Harsh Vardhan, Minister of Petroleum & Natural Gas and Skill Development and Entrepreneurship Shri Dharmendra Pradhan and other dignitaries.

In Maharashtra, Shri Hansraj Gangaram Ahir, Hon’ble Minister of State, Ministry of Home Affairs with Members of Parliament (MPs) and Members of Legislative Assemblies (MLA) graced a special event to mark the occasions in the Geographical Areas of Latur & Osmanabad districts, Sangli & Satara districts, Sindhudurg districts, Ahmednagar & Aurangabad districts and Valsad (except area already authorized), Dhule & Nashik Districts.

Natural gas can be used in CGD sector in following four distinct segments – (i) Compressed Natural Gas (CNG) predominantly used as auto-fuel,(ii) Piped Natural Gas (PNG) used in domestic households, (iii) commercial and (iv) Industrial segments.

At present, CGD authorization has been given for 92 GAs covering 129 districts (99 complete and 30 part) spread over 23 States and UTs. These cover about 20 percent of India’s population (as per 2011 census) and 11 percent of its geographical area. In addition, CGD operations are being carried out in 5 districts.

PNGRB had launched the 9th CGD Bidding Round in April 2018 for the 86 GAs which includes 174 districts (156 complete and 18 part), spread over 22 States and Union Territories (UTs). After the evaluation of bids, Letters of authorization for development of City Gas Distribution (CGD) projects in these GAs have been issued to 23 entities.

The GAs awarded in Maharashtra are Ahmednagar & Aurangabad Districts (to Bharat Gas Resources Limited), Latur & Osamanabad Districts (to Unison Enviro Private Limited), Sangli & Satara Districts (to Bharat Gas Resources Limited), Sindhudurg District, Valsad (except area already authorized), Dhule & Nashik Districts (this GA includes areas in Gujarat also) (to Maharashtra Natural Gas Limited).

With the completion of 9th CGD Bidding Round, natural gas would be available in 178 GAs comprising 290 districts (278 complete and 12 part) spread over 26 States and UTs covering more than 46 percent of India’s population and about 35 percent of its geographical area.

As per the commitment made by the various entities in the GAs, authorized for development of City or Local City Gas Distribution Network under 9th CGD Bidding Round in Maharashtra, 2,05,85,43 domestic PNG connections and 381 CNG stations would be installed largely during a period of eight years up to September, 2026, in addition to 7,171 inch-km of steel pipeline. Further, the entities would be authorized to supply natural gas to industrial and commercial units in their respective GAs as per the limits provided in the CGD Authorization Regulations.

This month, PNGRB launched the 10th CGD Bidding Round for 50 GAs spread across 14 states. This would increase coverage of city gas distribution to 70% of the country’s population and 53% of its area.

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