20 districts in Telangana to get PNG and CNG

In an initiative to turn India into a gas-based economy, oil regulator Petroleum and Natural Gas Regulatory Board (PNGRB) has sought bids from investors for 20 districts in Telangana with an overall investment of Rs 10,000 crore.

Once the project rolls out, more than half of Telangana will have access to clean natural gas — piped natural gas (PNG) for cooking and CNG for driving.

At present, only Hyderabad has PNG covering a minuscule 7,757 households and with Telangana planning to cover 20 districts, it could lead to 70-75% of PNG and CNG coverage in the state.

During the 9th City Gas Distribution (CGD) bidding round roadshow which took place in the city on Tuesday, PNGRB member Satpal Garg said that they are expected the contracts by October further stating that each district will require around Rs 300-Rs 500 crore investment to build the necessary infrastructure. 

The oil regulator intends to increase the share of natural gas in the energy basket in India from 6% to 15% by 2022 and has been working towards the same with an additional 12,000 km of a pipeline is currently under construction. 

Additionally, PNGRB is planning to establish a Gas Exchange hub similar to the Power Exchange India Limited which will determine the price of gas depending on the market forces removing the government’s role in fixing gas prices. 

The location of the hub will be any of the major pipelines in Gujarat, Maharashtra, and Kakinada in AP.

Global research firm Crisil will be assisting PNGRB in framing regulations for the gas exchange hub within 18 weeks from May 11. 91 geographical areas were awarded contracts in eight bidding rounds so far and the progress of the contracts are being reviewed by PNGRB.