Adanis set to begin gas supply in Gujarat

Gujarat Adani Energy Ltd, the Adani group company which has bagged the licence to distribute compressed natural gas (CNG) and piped natural gas (PNG) in Ahmedabad and Vadodara, is all set to provide gas to industrial units, domestic users and vehicles as the gas grid of Gujarat State Petronet Ltd has reached the two cities.

While the Ahmedabad gas despatch centre was inaugurated on Sunday, the Vadodara city gate station was commissioned a day earlier on Saturday.

The Adani group will invest around Rs 400 crore in setting up gas distribution networks in the two cities.

Adani group chairman Gautam Adani on Sunday said the backbone ring for CNG distribution in Ahmedabad will be ready by March 2005, while industrial units located around Vadodara will begin receiving gas before the month end.

"We are proud to be associated with gas distribution in Ahmedabad and Vadodara. By July 15, the first CNG station will begin functioning in Ahmedabad. We will work closely with the civic bodies in Ahmedabad and Vadodara to ensure that the gas distribution projects are implemented in time," said Gautam Adani.

He said this at a function to mark the arrival of gas at Ahmedabad, on Sunday.

In April this year, Adani Energy achieved financial closure for the twin projects of gas distribution in Ahmedabad and Vadodara cities. The Industrial Development Finance Corporation sanctioned a Rs 174.50 crore loan to Adani Energy.

The corporation has sanctioned a term loan of Rs 27.50 crore for the Vadodara project and another term loan of Rs 147 crore for the Ahmedabad project.

Both combined, the Ahmedabad and Vadodara gas distribution projects are expected to be set up at a cost of Rs 400 crore.

So far, the company has already spent around Rs 30 crore on the Ahmedabad and Vadodara projects and expects to spend another Rs 100 crore this fiscal year.

Adani Energy will supply gas to industries, commercial establishments, domestic users through a pipeline network and vehicles through a CNG station network.

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

The company is also working on development of its network in Santej, Changodar and Sanand industrial areas "" all located on the outskirts of Ahmedabad city. It is also working on setting up a network in Padra-Jambusar and Karjan areas apart from its planned area of operation at Alembic, Savli and Makarpura located around Vadodara city.

It has started laying pipelines in both Ahmedabad and Vadodara for the projects.

While the Nandesari project is planned to be commissioned by the end of this month, the Ahmedabad project is scheduled to be commissioned by June end. Adani Energy has signed gas sales and gas transportation agreements for these projects.

Meanwhile, Gujarat Adani Energy has completed a major portion of steel network for the Nandesari and Ranoli GIDC areas on the outskirts of Vadodara.

The work on the receiving station, named 'city gate station', at Dhanora has already been completed and commissioned on Saturday.

"We have already contracted various parties for gas sales agreement. Gas supply will start by month-end in the Nandesari and Ranoli areas," said a top official of the Adani group.

After long-drawn discussions with the Vadodara Municipal Corporation (VMC), the Adani group have recently got permission from the corporation to distribute gas and the network will be extended to the corporation areas also.

With this, all major hurdles in setting up gas network in Vadodara have been cleared.

The group is poised to take a major initiative to lay the network in areas of Jambusar and Padra in Vadodara.