Adani, GAIL & Bharat Gas to invest Rs 34 bn in gas distribution in Odisha

Adani Gas, GAIL Gas and Bharat Gas Resources (a subsidiary of BPCL) will invest Rs 34 billion in creating city gas distribution (CGD) network in Odisha in the next eight years in seven geographical areas (GA) covering 17 districts.

A CGD network is an interconnected network of pipelines for supply of gas to domestic, industrial or commercial premises and CNG stations situated in a specified GA.

These three companies have emerged as the successful bidders in the ninth round of bidding for implementing the project in the state.

In this round, Bharat Gas Resources bagged four GAs covering nine districts in the state. Bharat Gas Resources will invest Rs 12.52 billion to provide PNG (piped natural gas) to 67,000 homes and set up 61 CNG stations in Jagatsinghpur, Kendrapada, Jajpur, Keonjhar, Angul, Dhenkanal, Bargarh, Debgarh, and Sambalpur districts. 

Adani Gas has bagged the award for CGD in one GA covering Balasore, Bhadrak, and Mayurbhanj districts. It will set up of 20 CNG stations in these areas and provide PNG to 1,50,464 households over a span of eight years with investment of Rs 5 billion.

GAIL Gas will invest Rs 9.44 billion to set up 20 CNG stations in Sundargarh and Jharsuguda districts. It will also provide supply PNG to approximately 1,00,000 households in these two districts. 

Similarly, in Ganjam, Nayagarh and Puri districts, the company will invest Rs 7.28 billion to set up 15 CNG stations and supplying PNG to approximately 51,000 households.

Petroleum and Natural Gas Regulatory Board (PNGRB), constituted under PNGRB Act, 2006 develops the plans for development of CGD networks in the country, invites bids and grants the authorization for development of such CGD networks. PNGRB had offered 86 new GAs covering 174 districts across the country in its 9th CGD bidding round, the results of which were out.

Prime Minister Narendra Modi will lay the foundation stone for city gas distribution projects in 63 GAs across India, including seven in Odisha, on November 22 through a live video streaming programme at Vigyan Bhawan in New Delhi. On that day, Modi will also launch 10th round of bidding in 50 GAs spread over 123 districts in 14 states.