Govt seeks bids for five new CGD areas

According to the public notice issued on Friday, two GAs are in Chhattisgarh, one each in West Bengal and Uttar Pradesh and one GA shared between Bihar and Jharkhand.

The last date for receiving bids under the latest auction has been set as April 6.
The last date for receiving bids under the latest auction has been set as April 6.

The Petroleum and Natural Gas Regulatory Board (PNGRB) has invited bids for five new geographical areas (GAs) for the second tranche of the 11th round of bidding for city gas distribution (CGD).

According to the public notice issued on Friday, two GAs are in Chhattisgarh, one each in West Bengal and Uttar Pradesh and one GA shared between Bihar and Jharkhand. This latest call for auctions follows the government receiving more than 430 bids against 61 GAs in December 2021 in the first tranche of the 11th round of CGD bidding, where 65 GAs spread over 215 districts in 19 states and one Union Territory was offered. The last date for receiving bids under the latest auction has been set as April 6.

Presently, there are 228 GAs authorised by PNGRB in 27 states and UTs covering about 70% of the country’s population. After the 11th round, CGD networks are expected to reach more than 90% of the population. The present share of gas in the energy basket of the country is more than 6%, and the target is to take it to 15% by 2030. CGD uses 22% of natural gas in the country, and is the second-largest gas consuming category followed by fertiliser.

The CGD sector receives cheaper domestic gas under administered price mechanism for the domestic piped natural gas (PNG) and compressed natural gas (CNG) categories. However, liquefied natural gas has to be purchased from outside to meet the industrial and commercial PNG demand. The CNG segment comprises around 40% of consumption in CGD. As on November 2021-end, there were 83.7 lakh domestic PNG connections and 3,532 CNG stations across the country.

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