Private sector eyes 90 cities for piped gas distribution

October 17th, 2008 - 10:47 pm ICT by IANS  

Kolkata, Oct 17 (IANS) The private sector has shown interest in distributing piped natural gas (PNG) to homes in over 90 cities, a member of the Petroleum and Natural Gas Regulatory Board said here Friday.“In the long run, we plan to take this figure up to 300 cities,” board member Sudha Mahalingam told reporters here.

The board will invite bids later this month or early next month, she said, adding that bidders would be judged on four parameters - the number of household connections they can provide, network tariff, gas compression charge, and the length of pipeline.

With PNG, the government is expected to substantially reduce its subsidy on liquefied petroleum gas (LPG) for domestic use.

“Initially one operator will work in each city and will have exclusivity for marketing for the first five years,” Mahalingam said.

Kolkata is not there among the 90 cities targeted by operators as it doesn’t have the infrastructure for PNG distribution.

The Petroleum and Natural Gas Regulatory Board is a body for transportation, refining, retailing and gas distribution network for oil and gas companies. It also plays the role of legislator, executive and judicial body for such companies.

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