GAEL begins gas supply to industries

More industries in vadodara to be covered within six months

Gujarat Adani Energy Ltd (GAEL) has commenced the supply of gas to industries located at Nandesari and Ranoli industrial areas on the outskirts of Vadodara city. Within the next six months, GAEL will also provide gas to industries located at Palej, Karjan and Padra.

Meanwhile, the Adani group is also in advanced stages of talks with the Vadodara Municipal Corporation to work out the mode by which the it will provide gas within the city.

While the government has granted the gas distribution licence to GAEL in Ahmedabad and Vadodara, the VMC adamant on continuing with its piped natural gas (PNG) supply.

"We have already laid a gas distribution network in Nandesari and Ranoli industrial areas and will start providing gas to these industries. To begin with, we will supply gas to about 25 to 30 industries," said Sanjay Gupta, CEO (Infrastructure) of the Adani Group.

He added that in the next six months, many more units of the Palej, Karjan and Padra industrial estates too will begin receiving gas.

"Industries in this industrial belt are eagerly waiting for gas as a fuel and GAEL is quickly expanding its distribution network to meet their requirement," Gupta said.

Commenting on the gas distribution in Ahmedabad, Gupta stated that GAEL will begin delivering compressed natural gas (CNG) for public transport vehicles by the third week of October.

"Our first priority will be CNG for public transport vehicles, as pollution is a major problem in Ahmedabad. The transport sector will begin getting CNG by the third week of October," he said.

In April this year, GAEL achieved financial closure for the twin projects of gas distribution in Ahmedabad and Vadodara cities, for which it has bagged the licence for distribution of CNG and PNG.

Industrial Development Finance Corporation (IDFC) sanctioned a Rs 174.50 crore loan to GAEL. IDFC has sanctioned a term loan of Rs 27.50 crore for the Vadodara project and another Rs 147 crore for the Ahmedabad project.

The total demand for gas in Ahmedabad and Vadodara is estimated to be 2 million metric standard cubic metres per day (MMSCMD).

Several lignite and coal based industries in the industrial belts surrounding Ahmedabad and Vadodara are likely to shift to gas as fuel. GAEL will invest around Rs 600 crore in gas distribution in Ahmedabad and Vadodara.

For distribution in Vadodara city, Gujarat Adani Energy Ltd will first look at handling the PNG business of the Vadodara Municipal Corporation. At present VMC has 67,000 domestic connections for PNG, while it has 2,700 commercial gas connections in the city.