All house­holds to soon have clean cook­ing fuel: Prad­han

Millennium Post - - Mp Business -

NEW DELHI: State-owned In­dian Oil Corp (IOC) has emerged as the big­gest bid­der for city gas li­cences in the 10th bid round that also saw Adani Group, Hin­dus­tan Petroleum Corp Ltd (HPCL) and In­draprastha Gas Ltd as the other prom­i­nent bidders, ac­cord­ing to oil reg­u­la­tor PNGRB.

IOC, the coun­try's top oil re­finer and fuel mar­ket­ing com­pany that is look­ing to di­ver­sify into nat­u­ral gas dis­tri­bu­tion busi­ness big time, bid for li­cences to re­tail CNG to au­to­mo­biles and piped nat­u­ral gas to house­holds in 35 out of the 50 cities put on of­fer for the 10th round and an­other seven in part­ner­ship with Adani Gas.

Adani Gas bid for 19 cities on its own and seven in part­ner­ship with IOC, the Petroleum and Nat­u­ral Gas Reg­u­la­tory Board (PNGRB) said af­ter open­ing of bids be­tween Fe­bru­ary 7 and 9.

HPCL, a sub­sidiary of state-owned Oil and Nat­u­ral Gas Corp (ONGC), emerged as the third largest bid­der, putting in bids for 24 towns and cities while Gu­jarat-based Tor­rent Gas ap­plied for 20 ar­eas.

In­draprastha Gas Ltd, which re­tails CNG and piped cook­ing gas in the na­tional cap­i­tal, put in bids for 15 ar­eas while Bharat Gas Re­sources Ltd, a sub­sidiary of state-owned Bharat Petroleum Corp Ltd (BPCL), bid for 14 cities.

State-owned GAIL In­dia Ltd, which is coun­try's big­gest gas mar­keter and trans­port­ing com­pany, put in bids for just 10 ar­eas through its sub­sidiary GAIL Gas Ltd.

In the last bid round, it had man­aged to bag just 5 out of the 86 Ge­o­graph­i­cal Ar­eas (GAS) put on of­fer.

In the pre­vi­ous 9th round which was awarded just a few months back, Adani Gas had won city gas li­cences for 13 cities on its own and nine in a joint ven­ture with IOC.

IOC had won li­cences for seven cities on its own. Bharat Gas Re­sources Ltd had walked away with 11 cities while Tor­rent Gas had made 10 win­ning bids.

Sho­la­gasco Pvt Ltd bid for 9 out of the 50 GAS put on of­fer in the 10th round while Gu­jarat Gas bid for seven and Petronet LNG Ltd put in bids for five ar­eas.

Petroleum and Nat­u­ral Gas Reg­u­la­tory Board (PNGRB) had at the close of bid­ding on Fe­bru­ary 5 stated about 225 bids were re­ceived for li­cence to re­tail CNG to au­to­mo­biles and piped nat­u­ral gas to house­holds in 50 GAS of­fered in the 10th City Gas Dis­tri­bu­tion (CGD) bid­ding round. It had not re­vealed the names of the bidders then.

Eight out of the 50 GAS re­ceived sin­gle bids, with IOC be­ing the only ap­pli­cant for six ar­eas in Bi­har and Jhark­hand while other two sin­gle bidders were Bharat Gas Re­sources Ltd and GAIL Gas Ltd for one area each.

Stat­ing that the li­cences would be awarded by the month end, PNGRB had on Fe­bru­ary 5 said, "Once awarded, it is en­vis­aged that this ini­tia­tive would help in cre­at­ing a ro­bust in­fra­struc­ture by bring­ing an in­vest­ment of about Rs 50,000 crore, gen­er­ate em­ploy­ment and play a sig­nif­i­cant role in achiev­ing the shift to­wards a gas-based econ­omy, with nat­u­ral gas as the next gen­er­a­tion, cheaper and en­vi­ron­ment-friendly fos­sil fuel."

In the 10th round of CGD, 50 GAS, cov­er­ing 124 dis­tricts — 112 com­plete and 12 part — in 14 states were put on of­fer in Novem­ber 2018. The round would ex­tend city gas cov­er­age to 18 per cent of In­dia's ge­o­graph­i­cal area and 24 per cent of its pop­u­la­tion, the reg­u­la­tor said.

To­gether with past rounds, CGD net­work would now ex­tend to 400 dis­tricts, cov­er­ing 70 per cent of the pop­u­la­tion.

In the 10th round, bidders were asked to quote the num­ber of CNG sta­tions to be set up and the num­ber of do­mes­tic cook­ing gas con­nec­tions to be given in the first eight years of op­er­a­tion. Also, they had to quote the length of pipe­line to be laid in the GA and the tar­iff pro­posed for city gas and com­pressed nat­u­ral gas (CNG), ac­cord­ing to PNGRB.

The bid round comes within months of the close of the 9th round, which was the big­gest ever CGD licensing round where 86 per­mits for sell­ing CNG and piped cook­ing in 174 dis­tricts in 22 states and union ter­ri­to­ries were of­fered.

The govern­ment is tar­get­ing to raise the share of nat­u­ral gas in the pri­mary en­ergy bas­ket to 15 per cent from the cur­rent 6.2 per cent in the next few years.

The bid rounds are also aimed at meet­ing Prime Min­is­ter Naren­dra Modi's tar­get of giv­ing piped cook­ing gas con­nec­tion to 1 crore house­holds, roughly triple the cur­rent size, by 2020.

Cities of­fered in the 10th round in­clude Nel­lore in Andhra Pradesh, Muzaf­farpur in Bi­har, Kaithal in Haryana, Mysore and Gul­barga in Kar­nataka, Al­la­puza and Kollam in Ker­ala, Uj­jain, Gwalior and Morena in Mad­hya Pradesh, Jhansi and Basti in Ut­tar Pradesh, Firozpur and Hoshiarpur in Pun­jab, Ajmer and Jalor in Ra­jasthan, Naini­tal in Ut­tarak­hand and Dar­jeel­ing and Howrah in West Ben­gal. GREATER NOIDA (UP): Af­ter cat­a­pult­ing LPG cov­er­age by about 40 per cent in just 55 months, the govern­ment will soon make avail­able clean cook­ing fuel to all house­holds, Oil Min­is­ter Dhar­men­dra Prad­han said Sun­day.

Speak­ing at the Petrotech 2019 con­fer­ence here on the out­skirts of Delhi, he said cov­er­age of LPG in the coun­try has reached close to 90 per cent, ris­ing from about 55 per cent in 2014.

"Very soon, In­dia will be con­nect­ing all house­holds with clean cook­ing fuel. The source of fuel will be LPG as well as gas from bio-mass and al­ter­nate sources," he said.

The in­crease in cov­er­age has been cred­ited to the Prad­han Mantri Ujjwala Yo­jana (PMUY), which pro­vides free cook­ing gas (LPG) con­nec­tion to the poor. Un­der PMUY, about 6.4 crore con­nec­tions have been pro­vided since the launch of the scheme on May 1, 2016, he said.

"Be­fore March 31, 2020, we will pro­vide LPG con­nec­tions to 8 crore house­holds un­der PMUY," he said.

LPG is sup­posed to re­place tra­di­tional cook­ing fuels in ru­ral kitchens such as fire­wood and cow dung which not only con­trib­ute to en­vi­ron­men­tal degra­da­tion but also have se­ri­ous health im­pli­ca­tions on users.

Prad­han said the oil and gas sec­tor is a key con­trib­u­tor to In­dia's econ­omy and ac­counted for al­most 55 per cent of its en­ergy mix in 2017. In­dia is the third largest con­sumer of crude oil and petroleum prod­ucts in the world, ac­count­ing for 4.5 per cent of global oil con­sump­tion, be­hind US and China. "We have taken sev­eral mea­sures to over­haul the hy­dro­car­bon pol­icy frame­work to en­sure en­ergy se­cu­rity for the coun­try while pur­su­ing the green path to progress," he said.

List­ing re­forms to re­vi­talise the ex­plo­ration and pro­duc­tion ecosys­tem, he said a new rev­enue shar­ing model, uni­form li­cence for all hy­dro­car­bons and mar­ket­ing free­dom for oil and gas have been in­tro­duced.

Also, the govern­ment has in­tro­duced var­i­ous oth­ers pol­icy re­forms in­clud­ing mar­ket­ing and pric­ing free­dom for nat­u­ral gas pro­duced from deep and ul­tra­deep wa­ters and high pres­sure high tem­per­a­ture ar­eas, coal bed meth­ane, in­cen­tive for en­hanced re­cov­ery for aug­ment­ing pro­duc­tion of oil and gas from ma­tured fields and ex­plo­ration and ex­ploita­tion of un­con­ven­tional hy­dro­car­bon from all fields.

"We have set up a state-of-the-art Na­tional Data Repos­i­tory to fa­cil­i­tate po­ten­tial in­vestors to take in­formed de­ci­sions based on the geo-sci­en­tific data of hy­dro­car­bon re­sources in the coun­try.

"With the in­tro­duc­tion of Na­tional Data Repos­i­tory, In­dia has joined the league of coun­tries like UK and Nor­way which have a na­tional data repos­i­tory for the up­stream sec­tor," he said. ?

In down­stream sec­tor too In­dia has been able to at­tract global in­vest­ments, he said, adding that lead­ing play­ers like Saudi Aramco, AD­NOC, To­tal and Shell are ex­pand­ing their foot­prints in the coun­try's en­ergy space and look­ing to in­vest more in the In­dian oil and gas mar­ket.

Prad­han said the world is see­ing a dra­matic shift in en­ergy sources and con­sump­tion, with de­mand shift­ing from Europe to Asia.

The US has be­come the world's largest oil and gas pro­ducer af­ter the shale rev­o­lu­tion and is chal­leng­ing the tra­di­tional oil dy­nam­ics while so­lar en­ergy is emerg­ing as a com­pet­i­tive and most sus­tain­able en­ergy al­ter­na­tive. Also, the share of nat­u­ral gas in the global en­ergy mix is ris­ing. "The con­ver­gence of cheaper re­new­able en­ergy tech­nolo­gies, dig­i­tal ap­pli­ca­tions and the ris­ing role of elec­tric­ity will form the ba­sis for achiev­ing many of the world's sus­tain­able de­vel­op­ment goals," he said.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.