Govt seeks to bring states on board for piped gas project

THE MINISTRY HAS PROMPTED STATE-RUN PROMOTERS OF IGL TO SET UP A MANUFACTURING FACILITY TO MEET THE DEMAND OF ABOUT 40 MILLION METRES IN THE NEXT FOUR-FIVE YEARS

NEW DELHI: The government seeks to bring states on board to expedite projects worth about ~90,000 crore to directly supply piped natural gas to about 40 million households, and it has nudged Indraprastha Gas Ltd (IGL) to set up a ~250-crore gas equipment manufacturing unit to halt the influx of Chinese meters, people familiar with the development said.

For the first time, the ministry of petroleum and natural gas will hold a conference of all s t akeholders t hi s week t o resolve the contentious issue of land rights, a state subject, which is a major roadblock in creating underground pipeline infrastructure for city gas distribution (CGD) projects, a person with knowledge of the matter said on condition of anonymity.

T h e mi n i s t r y h a s a l s o prompted state-run promoters of IGL to quickly set up a manufacturing facility under a joint venture with a global technical expert to meet the demand of about 40 million metres in the next four-five years, he added.

IGL, which is a private entity, is promoted by state-run energy majors — Bharat Petroleum Corporation Ltd (BPCL) and Gail India Ltd with equal shareholding of 22.5% each. Balance equity in the company is held by banks, financial institutions and the public. “India is taking all necessary steps to usher in a gas-based economy and at the same time, encouraging domestic companies to localise manufacturing of equipment to boost the economy. Supply of PNG [piped natural gas] to kitchens and CNG [compressed natural gas] to vehicles is part of the strategy,” a second person, who works for the petroleum ministry, said on condition of anonymity.

IGL managing director ES Ranganathan confirmed the development. “We have to meet a demand of at least 40 million meters in the next seven years. It is an opportunity to set up a meter manufacturing unit under a joint venture. We plan to invest ~100 crore in plant and machinery and about ~150 to ~200 crore as working capital,” he said. Currently, China is the bulk supplier of the meters. He said the venture will start by June this year and full-scale manufacturing will begin from January 2021. “Joint venture wi t h a foreign partner is required for technology knowhow,” he added.

The petroleum ministry official quoted above said the government will encourage other public sector companies and domestic private firms to manufacture equipment, as they have an opportunity to tap investments worth ~1,94,666 crore in the sector by 2025. The road map was unveiled by finance minister Nirmala Sitharaman on December 31 last year. “An announcement to this effect is expected on Thursday at the national conclave on emerging opportunities in natural gas sector,” the second person said. The conclave is expected to be inaugurated by home minister

Amit Shah and attended by oil minister Dharmendra Pradhan, senior officials from states, regulators, and industry bodies.

So far, 5.5 million domestic households are connected with piped gas in the country. Currently, city gas projects are underway in 232 geographical areas.

Vijay Kumar Gupta, former central council member of the Institute of Chartered Accountants of India said, “It is a good strategy of the Centre to involve states to avoid delays in getting regulatory clearances, a state subject. The government plans to spend about ~1.95 lakh crore in development of oil and gas infrastructure. The share of CGD alone is expected to be over ~90,000 crore. This is the time when the government should encourage domestic investors to set up manufacturing facilities, which will boost the sagging economy.”

NEWDELHI: The withdrawal of the erstwhile Soviet Union from Afghanistan in 1989 spelt doom for the Pandits in the Kashmir Valley, with pan-islamic jihadists switching their focus from Kabul to Kashmir at the direction of their handlers in Pakistan.

Interestingly, 30 years after the tragic exodus of Kashmiri Pandits from the Valley, the jihadists have now given way to non-state actors, yet again out to grab Kabul. This time, it is the US which is walking away from a nation that is still in crisis, Afghanistan, by striking a deal with the Taliban, whose leadership prospers across the Durand Line. In a sense, it is all back to square one as the motherlode of jihad remains largely untouched in the Islamic Republic of Pakistan.

The rise of jihad in the Valley was also due to the weak regimes of VP Singh and Chandrashekhar with fractured politics in Delhi ensuring that the Centre became a bystander in the Valley. This time, there is a strong Centre, but it is clear that things could take a turn for the worse even now.

The main threat to India comes from pan-islamic jihadist groups based in Pakistan with its deep state treating them as strategic assets to hurt New Delhi. It is now an established fact that Rawalpindi GHQ provides financial, logistic and tactical support to global terror groups such as the Jaish-e-mohammed, Lashkar-eTaiba, Hizbul Mujahideen, Tehreek-ul-mujahideen, Harkat-ul