Date:07/01/2009 URL: http://www.thehindu.com/2009/01/07/stories/2009010753831000.htm

New Delhi

IGL gets marketing rights for CNG in Delhi

Sujay Mehdudia

Company will face no competition in marketing of gas for three years
Will have monopoly over the pipeline network in the city for 25 years

NEW DELHI: Putting an end to a bitter controversy over the legality of Indraprastha Gas Limited’s operations in Delhi, the Petroleum and Natural Gas Regulatory Board has finally given IGL an exclusive period for operating retail business of eco-friendly Compressed Natural Gas (CNG) distribution to automobiles and Piped Natural Gas (PNG) to households.

In its order dated January 1, the Board, which had questioned the legality of operations of the 10-year old IGL, has given the company a three-year exclusive period of operation in Delhi. “The company will face no competition in marketing of gas for three years and will have monopoly over the pipeline network in the city for 25 years,” official sources said.

Network extension

As per the mandate given by the oil regulator, IGL would expand its pipeline network to supply natural gas to households in 21 new localities including Chandni Chowk, Najafgarh, Tuglakabad and Karol Bagh by 2011-12 and add 35,000 households every year.

In a statement issued here, IGL said the Board had accepted that IGL is the only authorised entity for implementation of the Delhi city gas distribution project for supply of CNG to the transport sector and piped natural gas to domestic kitchens in the Capital. The company plans to take the number of domestic consumers up to 237,000 by 2011-12 from the current 132,000 while the length of the steel pipeline in Delhi is proposed to be increased from current the 824 inch km to 1,100 inch km.

The nod from the regulatory body would give a further fillip to IGL’s preparations for the Commonwealth Games-2010 with plans for adding another 50 new CNG dispensing stations in the next two years. IGL said plans are afoot now to expand shortly to neighbouring towns such as Noida and Greater Noida where infrastructure has already been laid.

The Board, however, has not authorised IGL for operations in these two towns, where private firms like Adani Energy too are interested in city gas operations. IGL said all CNG stations in Delhi would be given a vibrant new look before the Commonwealth Games-2010.

The company said it is on the fast track to increase its infrastructure to cope with the rising demand. IGL aims to set up 50 more CNG stations in Delhi before the Commonwealth Games.

“Fast track expansion in compression capacity is being undertaken by installation of electric-driven compressors. The capacity has already been increased substantially in the last six months which has led to a reduction in waiting time for CNG fuelling,” it added.