Mahanagar Gas plans network expansion

Mahanagar Gas Ltd (MGL) is planning to add 50,000 more customers in the current fiscal in Mumbai and Thane. The country's largest gas distribution company is investing Rs 200 crore in extending its pipeline network.

By the fiscal end, MGL plans to add large swathes of south Mumbai to its network including Colaba, Cuffe Parade, Metro and Marine Drive. In central Mumbai, it is focussing on the area between Dadar and Parel.

In the suburbs, MGL will expand its network from Thane towards Belapur, Taloja, Kalyan and Dombivili. The company hopes to extend its network to Dahej, Uran and Hajra by 2007and reach Pune by 2008.

By 2009-10 it plans to cover the Mumbai-Pune-Nashik triangle. The massive expansion plan is likely to cost the GAIL, British Gas and the government of Maharashtra joint venture close to Rs 800 crore.

AK Purwaha, managing director (MD), Mahangar Gas Ltd said, "We are extending our distribution network, depending on wherever transmission companies like GAIL are taking the gas. Since GAIL has plans to lay gas pipleines for all these areas, we will be there to distribute it."

In this year, around 30,000 households are likely to be in Mumbai and another 20,000 from Mira-Bhayander and Thane municipalities. The households covered by MGL this year will in clude flats built under the slum rehabilitation scheme in areas that fall under the expansion scheme.

To meet its additional requirement of gas, MGL is looking at alternate sources such as the Hajra, Dahej and Dabhol. Purwaha said: "By 2007, we expect our additional requirement of 2.3 million standard cubic metric tonne to be met from various vendors. We are also in negotiations to purchase gas from the Dabhol plant, which will have an additional capacity of 2.9 million standard cubic metric tonne."

Purwaha added that MGL was hopeful of buying gas from the Krishna Godvari basin by 2009.