PACT SIGNED FOR TRANSFER OF GAIL ASSETS TO STATE COMPANY
The Rajasthan government signed a business transfer agreement with Gas Authority of India Limited (GAIL) on Tuesday.
Under the agreement, the assets made by GAIL in Kota for city gas distribution through pipelines will be handed over to Rajasthan State Gas Limited, which is a joint venture company of Rajasthan State Petroleum Corporation Limited (RSPCL) and GAIL, with 50-50 partnership.
The Rajasthan State Petroleum Corporation Limited is owned by the Rajasthan State Mines and Mineral Limited.
Union minister for petroleum and natural gas Dharmendra Pradhan said Rajasthan Gas Limited will now be able to bid for future projects and bring in revenue for the state government.
Chief minister Vasundhara Raje said, “Now that the business transfer agreement is signed, Kota will get the city gas and we will be able to build a CNG network.”
The agreement was signed by RSGL managing director Ravi Agarwal and GAIL chief executive officer PK Paul.
A senior official on anonymity said the supply of Piped Natural Gas to the households in Kota would be launched within this year.
Other smart cities like state capital Jaipur, Ajmer, and Udaipur had to wait as the there is no pipelines exist currently to take up this task.
The piped natural gas (PNG) could be a viable option only if it is linked to industry demand as household supply alone cannot make a viable business option.
A SENIOR OFFICIAL ON ANONYMITY SAID THE SUPPLY OF PIPED NATURAL GAS TO THE HOUSEHOLDS IN KOTA WOULD BE LAUNCHED WITHIN THIS YEAR.