Uttaranchal plans deal with GAIL

With industrial deluge continuing in Uttaranchal, the state government is now roping in GAIL India Ltd to explore the possibility of running industries using gas-based energy.

The State Industrial Development Corporation of Uttaranchal Ltd (SIDCUL), which had developed several modern industrial estates, will sign a MoU with GAIL India Ltd .

"As industrial activities intensify, fuel requirements are expected to rise sharply. Given the environmental sensitivity and the need for ecological preservation, it is a strategic necessity to consider gas as a potential alternative to meet the energy needs of the state. It is undeniable that gas is one of the most environment-friendly fuels that exist today," said a top industry official.

The announcement of the new industrial package with excise and income tax concessions has seen a flurry of industrial activity in Uttaranchal. By signing the MoU with GAIL, consumers would be ensured a steady supply of energy, the official said.

A preliminary assessment of demand for gas in Uttaranchal indicates a total requirement of about 1.88 million standard cubic metres per day (SCMD) for potential users like Asahi Glass (150,000 SCMD), Pankhuri (200,000 SCMD), India Glycol (100,000 SCMD), etc.

According to a preliminary survey, the major centers of Uttaranchal can be covered by laying a 300 Km pipeline. The economic rationale for the pipeline will stem from the demand profile.

The Haridwar line can also serve important industrial centers in Uttar Pradesh like Meerut, Muzaffarnagar and Saharanpur, the official added.GAIL has indicated its willingness to consider the project, if the demand for gas justifies the laying of pipeline. The gas pipeline infrastructure in Uttaranchal will encourage industrial activity, even after concessions offered currently are withdrawn.

SIDCUL has been established to assist in the expeditious and orderly growth and development of industries in Uttaranchal, and has been functioning as an agency of the government for promotion of Industrial and Infrastructural Investment. It has been mandated by the government of Uttaranchal to explore means to make available natural gas as an environment-friendly fuel for the rising energy needs of its industry and the peoples, the official added.