Karnataka seeks Moily's intervention in Bangalore CNG project

Karnataka has sought central intervention to enable roll-out of CNG infrastructure here.

"... Karnataka is keen to roll out CNG infrastructure in Bangalore on priority", Chief Minister Jagadish Shettar said in a letter to Minister for Petroleum and Natural Gas M Veerappa Moily.

Karnataka State Industrial Infrastructure and Development Corporation and GAIL have signed an agreement to form a joint venture (JV) company for distribution of gas to various consumers in the state, he said.

Stating that the roll-out of CNG infrastructure here can be carried out by the proposed JV company, Shettar sought Moily's intervention for issuance of suitable directions to facilitate the state to execute this project on priority through the proposed JV company.

He noted that under the existing scheme of gas supplies (City Gas Distribution-CGD) in cities in the country, PNGRB (Petroleum and Natural Gas Regulatory Board) has been empowered to authorise and select such agencies for city gas supplies.

Prior to setting up of PNGRB in 2007, it was Government of India (Ministry of Petroleum and Natural Gas) which was authorising the city gas projects in cities like Mumbai, Delhi and Lucknow and these have been successfully undertaken by GAIL through its JV(s).

Since inception, PNGRB has carried out four rounds of bidding for CGD authorisation. "I am given to understand that so far, only two rounds have been concluded for award of authorisation of only 13 GAs (cities). It is not known when the PNGRB will put Bangalore for bidding", Shettar said seeking Moily's intervention.

Shettar also requested Moily to advice GAIL to take up necessary project activities to ensure that its Dabhol- Bangalore pipeline (BDPL) was connected to Dharward, Bhadrawathi, Udupi and Mangalore at the earliest.

"It will not only help in providing early natural gas connectivity to these cities but also help in optimal utilisation of BDPL capacity," he said in a separate letter to Moily.

"This will ensure that critical gas supplies for use as fuel or feedstock reaches consumers such as MRPL, OMPL, MCF, KIOCL etc. and also present a strategic option for high priority projects such as the Indian Strategic Petroleum Reserves Limited (ISPRL) coming up near Mangalore and Udupi".

Ensuring the availability of natural gas at Dharward, Hubli, Bhadravathi/Shimoga, Udupi and Mangalore will be of immense help in not only reducing the pollution levels but also in providing fillip to further industrial development of these cities, the Chief Minister added.