|Sr. No. ||Particulars ||CRISIL View |
||Nature of Project
||Setting-up / Expanding city gas distribution network in various cities in the State |
||Commercial CGD network operations are underway in many of cities and pipeline laying work is also underway in a number of cities. |
||Proposal and phasing
||Considering the increased availability of natural gas in the State from imports of LNG and KG Basin gas entering the State, the State Govt. is encouraging setting up of CGD networks in all major cities / demand centres in the State.
It is envisaged that initially the stress would be on setting-up CGD networks in cities which are already connected to gas pipeline infrastructure and would be in a better position to service customer needs.
Incremental investments would be made on a continuous basis in the existing CGD networks and new cities as the demand grows.
||Benefits / Rationale
||Availability of natural gas to all categories of consumers across the State and replacement of polluting liquid fuels with clean energy i.e. natural gas coupled with the economic benefit of replacing high priced liquid fuels with moderately priced natural gas. |
||CGD network development is linked to the growth of pipeline infrastructure in the State. The development of the State Grid would determine the order of priority in which CGD networks are set-up in the State. |
||Cost / Investment in each phase
||It is expected that around Rs. 250-300 Crores would be required for development of CGD network in each city. Initially, the investments would be higher to lay the main steel grid and then annual incremental investment would be required to expand the facilities to new areas in the city and setting-up additional CNG stations.
Till FY2010 – Rs.1,492 Crores
By FY2012 – Rs.1,684 Crores
By FY2017 – Rs.5,128 Crores
By FY2020 – Rs.1,596 Crores
||Means of Finance
||Borrowings & Equity Infusion |
||PPP / Non PPP
||PPP / Private Sector |
||Each project would be structured based on specific requirements of the city. The implementation will be quite smooth as CGD is not very technology intensive and it will be supported by Central and State Governments. |