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Speed Up Piped Gas Project: CM

The state government has massive plans for supply of gas in AP to all the sectors - including domestic and industrial.
Hyderabad | 19th July 2010
Chief Minister K Rosaiah on Sunday asked the Petroleum And Natural Gas Regulatory Board (PNGRB) to speed up the process for piped cooking gas distribution in Andhra Pradesh.

Rosaiah said the State Government has already prepared its distribution plan for 12 districts and submitted the Expression Of Interest (EoI) with the PNGRB.

The Chief Minister said since the gas is abundantly available in the Krishna-Godavari basin, there should be no problem in supplying piped gas to the domestic and other consumers in Andhra Pradesh.

Rosaiah reviewed the piped gas distribution position with Chief Secretary S V Prasad, Principal Secretary, Industries Sam Bob and top officials of AP Gas Infrastructure Corporation.

The Chief Minister thanked the PNGRB for according differential rates of tariff of gas transmission resulting in reduced tariff for Andhra Pradesh.

"The Government of Andhra Pradesh thanks the PNGRB for considering the long-pending demand of the state government for reduction of gas transportation tariff. The reduced tariff will help increased use of gas in the state and in the establishment of more industries here," Rosaiah said.

While appreciating the support of the PNGRB, which is the awarding and regulating body for gas transmission and distribution, the Chief Minister wanted to know the time schedules for various aspects of gas transmission and distribution in the State.

He also requested the PNGRB to give details of the progress so far made in the laying of pipelines in the state.

The state government has massive plans for supply of gas in AP to all the sectors - including domestic, industrial, transport, commercial, power generation and fertilizers.

The state has already prepared its distribution plan for 12 districts and submitted its Expression Of Interest (EoI) with PNGRB.

These 12 districts are covered with 7 proposals. These districts are Medak, Ranga Reddy, Nalgonda, Khammam, East Godavari, West Godavari, Krishna, Srikakulam, Vizianagaram, Visakhapatnam, Karimnagar and Warangal.

The state government feels that district areas be included as a single unit while fixing the boundaries of that unit, for the sake of administrative convenience.

The PNGRB chairman was requested to see that the gas distribution in Hyderabad, Rajahmundry, Vijayawada, Kakinada are completed on a war footing, so as to make piped gas supply in city areas at the earliest.

Further, the chairman was requested to see that all the main trunk lines are laid, covering south coastal Andhra and Rayalaseema.

The APGIC is also preparing a proposal for the remaining 10 districts of Adilabad, Nizamabad, Mahabubnagar, Kurnool, Anantapur, Chittoor, Kadapa, Nellore, Prakasam and Guntur.

If the agencies which are awarded the main trunk line are asked to execute the works, the APGIC will file the proposal with PNGRB immediately.

Rosaiah said that this is the most important item of the government's agenda now. He stressed that PNGRB should protect the interest of consumers by fostering fair trade and competition amongst the entities; register entities to market notified petroleum and petroleum products and (subject to the contractual obligations of the central government) natural gas; establish and operate liquefied natural gas terminals; establish storage facilities for petroleum, petroleum products or natural gas exceeding such capacity as may be specified by regulations.

In respect of notified petroleum, petroleum products and natural gas, the Board will ensure adequate availability; ensure display of information about the maximum retail prices fixed by the entity for consumers at retail outlets; monitor prices and take corrective measures to prevent restrictive trade practice by the entities; secure equitable distribution for petroleum and petroleum products; provide, by regulations, and enforce, retail service obligations for retail outlets and marketing service obligations for entities; monitor transportation rates and take corrective action to prevent restrictive trade practice by the entities; levy fees and other charges as determined by regulations; and maintain a data bank of information on the activities.

The chief minister emphasized that the Board should also lay down the technical standards and specifications, including safety standards, in activities relating to petroleum, petroleum products and natural gas - including the construction and operation of pipeline and infrastructure projects related to downstream petroleum and natural gas sector - and perform such other functions as may be entrusted to it by the central government to carry out the provisions of this Act.

The officials informed the CM that the Board will have jurisdiction to adjudicate upon and decide any dispute on matters arising amongst entities or between an entity and any other person on issues relating to refining, processing, storage, transportation, distribution, marketing and sale of petroleum, petroleum products and natural gas.

Courtesy: INN News
filed in:  LPG, Fuel, Development Projects, K Rosaiah, Piped Gas Project, Petroleum And Natural Gas Regulatory Board, AP Gas Infrastructure Corporation
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