Natural gas projects hit due to fund crunch -...

Hindustan Times Edition Jaipur 25.2.2017 Page 3Height 23.83cm Width 16.44 cm

Natural gas projects hit due to fund crunch HURDLES Infrastructure in place but transfer deals pending

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JAIPUR:The state government's ambitious plan for building nat­ura l gas infrastructure for domestic and industrial use have been slow to takeoffdue to flmd shortage, sources said.

The government has drawn up plans to supply natural gas for indusb.ialclustersinAlwar, Jhalawar , Baran and Bhilwara districts , apart from domestic piped gas in cities of Jaipur, Kota, Udaipur and Ajmer. The government has set up CNG tlli­ingstations on theJaipur-Delhi highway and a CNG mother sta­tion in Neemrana, but other pro­jects have been delayed.

For example, entir e infra­structure is in place in Kota, but the city gas project is stuck d ue to delay in signing of business tr ansfer agr eement (BTA) between the Gail Gas Ltd and the Rajasthan State Gas Ltd (RSGL).

Gail Gas Ltd is a subsidiary of the public sector company Gas Authority of India Ltd and RSGL is the state-authorised nodal agency to build retail gas infra­str ucture in the state.

"In case ofKota, 111e project to supply piped na tural gas for domestic purpose will move for­ward once the business transfer agreement between Gail Gas Ltd and RSGLissigned," said an offi­cial , who did not wis h to be named. "However , the bigger

PENDING PROJECTS • The CNG filling stations on

the Jaipur-Delhl highway and a CNG mother stat ion in Neemrana, have been delayed.

• infrastructure is in place in Kota, but the project Is stuck due to delay in signing of business transfer agreement

• supply natural gas for industrial clusters in Alwar, Jhalawar, Baran and Bhilwara distrkts, delayed.

issue here is that until the BTA is signed, RSGL will not be in a position to take up the proj ect activities as per 111e blueprint prepared for ca tering demand in adjoining areas ofKota. More­over, the construction activity for identified CNG stations on Kota-Jaipur and Kota-Jhalawar­Dewas-Mumbai routes will be taken up after transfer of city gas distribution assets of Kota to RSGL." he said.

The crux of the issue is com­mibmentofequity infusionon40 crore by the state govenunent for ta king up requisite project activities for city gas disb.-ibu­tion in Kota. The BTA has been delayed even as the Petroleum a nd Natural Gas Regulatory

Board (PNG RB) had granted no objection certificate to the Gail Gas Ltd for b.-a.nsfer ofits city gas distribution licence for Kota in favourofRSGL way back in 2015, following which RS GL had signed an MoU with the sta te government for developingnat­ural gas infrastr ucture.

When contacted , RSGL man­aging director Ravi Agarwal said, "Once the commitment of equity funds by other promoter company RSPCL (Rajasthan Sta te Petroleum Corporation Ltd) is ensured. the business transfer agreement between RSGL and Gail Gas Ltd will be signed. The blueprintfor cater­ingtodemandin adjoiningareas of Kota and for establishing pro­posed inter -CNG corridor on Kota-Jhalawar -Dewas- Mum­bai route is in place."

While residents in Kota will get piped gas once the agreement is signed and RSGL takes over the project from Gail Gas Ltd, residen ts of other designated smart cities - Jaipur, Udaipur and Ajmer - will have to wait for a longer tim e, as no pipeline infrastructw-eis in place due to Jack ofindustrial demand in 111e region.

"It's a classic chicken and egg situation. Unless 111ere isindus­tr ial demand, the gas projects will not come up and unless the industry has access to clean and cheap fuel, the units will not come," said the offiCial.

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