Investment in infra to the tune of Rs 30k crore.
The Petroleum and Natural Gas Regulatory Board (PNGRB) is aiming to cover as many as about 100 towns and cities in the first phase of city gas distribution which will be rolled out next year.
“The estimated investment on infrastructure for 100 cities would be about Rs 25-30,000 crore,” said L.K. Singhvi, member of board, PNGRB.
PNGRB has recieved 71 EOIs from global and domestic players. This includes Reliance Industries Ltd and GAIL among other existing that were permitted by the government before the regulator was formed.
“The current gas allocation policy is creating distortion which is keeping private players away from entering gas distribution. We will ensure that there is more competition in the market and we want more private players to enter the segment,” said Labanyendu Mansingh, chairman of PNGRB, who was in Ahmedabad to attend a round table on CGD Networks-Authorisation organised by CII. He also said that the regulator will ensure elimination of cross-subsidy.
On being asked as to how a level playing field can be maintained with a number oil producing players also in fray, Singhvi said that there will be a proper level playing field and a proper code of conduct.
“The gas producer for the networks will be finalized by the regulator and the authorised player cannot sell gas to itself. Authorisation is not subject to gas tie-up,” said BS Negi, member PNGRB. Players like Essar, GSPC, Cairn and Shell are also in the race, said sources familiar with the development.
Petroleum affairs remain under the control of the petroleum ministry now, but the charge is likely to be passed to PNGRB in future.
The proposed gas distribution network will cover states like Andhra Pradesh, Gujarat, Tamil Nadu, Maharashtra, Uttar Pradesh and Haryana in the first phase.
