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Nation Wide Network: Gas Pipeline Authority Soon,Cess On Gas May Be Imposed To Fund Body


By ugesh sarkar, Section News
Posted on Tue Jan 26, 2010 at 11:02:07 PM EST

The government plans to gradually substitute oil with gas as transport fuel. OIL MINISTRY OFFICIAL

After national highways, it's gas pipes. Decks have been cleared for the creation of a National Gas Highway Development Authority (NGHDA) on the lines of National Highway Authority of India (NHAI). The proposal awaits a final nod from the Prime Minister's Office.

Using the public-private partnership route, NGHDA will lay gas pipelines across the country, carrying gas from production fields to industries. It will also carry the gas to hubs that will link households, allowing people to use gas to drive vehicles, and as cooking fuel.

"A cabinet note proposing creation of this authority has been circulated to ensure speedy formation of India's gas grid and operationalisation of a gas management system," a petroleum ministry official told HT.

The body will be financed in three ways -- budgetary allocations, levying a cess on gas, and by multilateral agencies.

"The issue of levying a cess on gas is under consideration of the PMO," the official said.

Source: Hindustan Times by Anupama Airy Gas pipeline authority soon

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In the past five years, availability of gas in India has risen, with companies such as Reliance Industries and ONGC announcing new discoveries.
"Gas being cheaper and cleaner, the government plans to substitute oil as transport fuel by gas," said Petroleum Secretary R.S. Pande. "Such substitution will result in substantial reduction in import of crude oil."

According to a cabinet note by the ministry, gas pipeline density in India is 3.29 km per 1,000 sq km -- as against 53.57 km in the US, 47 km in France and 70.85 km in Pakistan.

"But demand for gas will depend on availability of pipelines," Pande said. "So if availability of gas in the country goes up, speedy coverage of the country with pipelines will be needed."

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