The government of Gujarat has decided to invite private-sector investment in the development of gas distribution infrastructure.
The state government has also mandated the Gujarat State Petroleum Corporation Ltd (GSPCL) to act as the nodal agency for all matters related to gas pipelines.
Private companies interested in such projects will have to send their proposals to GSPCL. They will have to furnish a security deposit of up to Rs 1 crore.
"After scrutiny of the application, GSPCL will issue a no-objection certificate to such applicants within three months. The companies can then undertake the development of gas distribution pipelines. They will, however, have to abide by certain conditions," said an official spokesperson of GSPCL.
D J Pandian, managing director of GSPCL, said: "So far, we have received about 40 proposals for setting up networks in the major cities and towns of Gujarat. We are optimistic that we will receive many more in future."
Gas production in the state, especially in the private sector like the GSPCL-Niko consortium project and Cairn Energy, is likely to increase in the near future.
Liquefied natural gas (LNG) import terminals are also being set up at Hazira and Dahej. Regassified LNG is likely to be available by 2004.
GSPCLs subsidiary Gujarat State Petronet Ltd (GSPL) has already developed more than 100 km of pipeline from Hazira.
"Work is in progress in various sections of this pipeline. It will be developed up to Baroda by March 2003 and up to Ahmedabad by December 2003. Simultaneously, such pipelines will also be developed in the Saurashtra region," said the spokesperson.
The majority of pipeline infrastructure will be ready by 2004. Proposals are being received for development of gas distribution zones in the state.
The state government has recently finalised a policy for gas distribution. All proposals will be scrutinised according to this policy.
"The main objectives behind having a distribution policy include ensuring development of gas distribution zones in the rural and urban areas by 2005, ensuring competition in the market and to protect the consumer interest by providing piped gas for domestic purposes," added the GSPCL spokesperson.
The policy also aims to promote investment to the tune of Rs 1,000-1,500 crore in gas distribution infrastructure.
