PNGRB calls bids to set up city gas network in 34 areas

By: | Published: October 6, 2015 1:05 AM

The Petroleum and Natural Gas Regulatory Board (PNGRB) has put out 34 areas for bidding to set up city gas distribution (CGD) networks under the six rounds of auction.

The Petroleum and Natural Gas Regulatory Board (PNGRB) has put out 34 areas for bidding to set up city gas distribution (CGD) networks under the six rounds of auction. The preliminary bids would close on December 14, said the auction notice issued on October 1.

This is at a time when responses to the recently held fifth round were not encouraging. In the previous auction round, where 20 areas across six states — Andhra Pradesh, Maharashtra, Uttar Pradesh. Gujarat, Karnataka and Uttarakhand — were put out on bid, the regulatory board could award just eight. This is because several areas did not receive any bids and some received just a single bid. Lack of demand for natural gas has dampened the target to provide clean fuel to more than 200 cities in India.

In the latest round, PNGRB has invited bids for development of CGD network in nine states including Madhya Pradesh (5), Gujarat (8), Maharashtra (2), Uttar Pradesh (8), Karnataka (2), Haryana (4), Goa (1), Punjab (3) and Uttarakhand (1).

An official at the downstream regulator said that in the fifth round the areas where bidders showed interest have been awarded. “The remaining would be put out again for bidding once market condition improves,” the official told FE.

In sync with the Modi government’s plan to roll out cleaner fuel to newer cities, as many as 46 new districts in the country could see city gas distribution networks being rolled out in 2015-16.

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