India plans two national gas grids

Chennai Oct 19 (IANS) With the discovery of natural gas in Andhra Pradesh which nearly doubles its availability in the country, India is planning to have two national gas pipeline grids, an official said Tuesday.

‘We are aiming at setting up two national gas grids in five years time. One will be in Gujarat and the other in southern India,’ Petroleum and Natural Gas Regulatory Board (PNGRB) chairman L. Mansingh said, speaking at the Chennai 2020 seminar organised by the Confederation of Indian Industry (CII) here.

He said 25 cities in Tamil Nadu has been identified for development of city gas distribution (CGD) network.

Seeking lowest tax rate in the value added tax (VAT) structure for gas distributed through pipelines in cities from the state government, Mansingh said: ‘The bids for setting up of the CGD will have to be issued at least one year before the completion of pipelines.’

According to him, large parts of Tamil Nadu will be linked by gas pipeline networks granted by the centre.

He said there are four pipeline projects for Tamil Nadu — Kakinada-Chennai, Chennai-Tuticorin, Chennai-Bangalore-Mangalore and Kochi-Bangalore-Mangalore.

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