Govt starts bidding process for city gas distribution in 8 geographical areas

These areas include Arunachal Pradesh, Meghalaya, Manipur, Nagaland, Sikkim, Union territory (UT) of Jammu & Kashmir and Ladakh.
Image used for representational purpose only. (Photo | R Satish Babu, EPS)
Image used for representational purpose only. (Photo | R Satish Babu, EPS)

NEW DELHI:  The government on Thursday offered eight geographical areas (GAs) under the 12th city gas distribution (CGD) bidding round for retailing compressed natural gas (CNG) and piping the fuel to household kitchens and industries. 

These areas include Arunachal Pradesh, Meghalaya, Manipur, Nagaland, Sikkim, the Union Territory (UT) of Jammu & Kashmir and Ladakh.  

The electronic bids would be invited from October 13, 2023, and the last date for submission of bids is January 11, 2024.

The Petroleum and Natural Gas Regulatory Board (PNGRB) will award for distribution of CNG to the companies by 2024.

“Government has focused on promoting the usage of natural gas as a fuel across the country to raise the share of natural gas in the primary energy mix from current level to 15% in coming years,” said petroleum minister Hardeep Singh Puri, while speaking at the launch event. 

The current share of gas in the energy mix stands at 5.78 %, and the government aims to increase it to 15% by 2030.

After completion of the 12th CGD bidding round, nearly the entire country, except Mizoram.

Andaman and Nicobar and Lakshadweep will be covered under the gas distribution network. 

The minister said the successful conclusion of the 11th CGD bidding round has increased coverage of the CGD sector to about 98% population and 88% geographical area of the country. This round of bidding will help expand CGD coverage further.

In the 11th CGD bidding round, PNGRB authorised 67 GAs for the development of the CGD network in the country.

He said, that currently, a 23,500 km long gas pipeline network is under operation in the country and a nearly 12,000 KM pipeline is approved/under construction. The government is trying to complete the vision of One Nation One Gas Grid by 2030.

“Currently, there are 300 GAs authorised by PNGRB covering nearly 88% of geographical area and 98% of its population. PNGRB has authorised 32,203 km of natural gas trunk pipelines, out of which about 22,191 Km of pipeline are currently operational,” added Puri. 

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