As regards Gujarat state, Gujarat Gas Company Limited, Sabarmati Gas Ltd. and GAIL (India) Ltd., have been allocated 6,00,000 scmd, 150,000 scmd and 125,000 SCMD respectively for supply to their industrial and commercial customers in Surat, Bharuch, Gandhinagar, Mehsana, Sabarkantha and Vadodara. In addition, GGCL is being supplied 2.13 MMSCMD and Gujarat State Petroleum Corporation Ltd. (GSPCL) is being supplied 1.1 MMSCMD from the Panna Mukta Tapti (PMT) field for supply to their CGD and small commercial and industrial customers. The CGD entities as well as the small and medium enterprises are free to contract for Liquefied Natural Gas (LNG) supplies for which adequate capacity exists. CGD entities have procured around 2.82 MMSCMD of R-LNG for supply to their Domestic/ transport/ Commercial/ Industrial Customers. The details are as follows: Name of the Entity LNG procured (SCMD) Sabarmati Gas GGCL GSPC gas IGL MGL Green Gas Ltd. Total Grant of Authorisation There are 22 entities engaged in CGD business in India. 468,129 430,137 1,707,417 60000 123000 31636 2,820,318 Company 1. Gujarat Gas 2. GSPC 3. Adani Energy 4. Sabarmati Gas 5. Vadodara Mahanagar Seva 6. Assam Gas Company Limited 7. Great Eastern Energy Corp. Ltd. 8. Siti Energy 9. Indraprastha Gas Ltd. 10. Mahanagar Gas Ltd. 11. Maharashtra Natural Gas Ltd. 12. Central U.P. Gas Ltd. 13. Green Gas Ltd. Area of Operation Surat, Bharuch & Ankleshwar Daman, Rajkot & many other districts of Gujarat Ahmedabad, Faridabad & Khurja Gandhinagar, Mehsana & Sabarkantha Vadodara Duliajan & adjoing areas Asansol & Durgapur Moradabad Delhi, Ghaziabad, Noida & Greater Noida Mumbai, Thane, Mira Bhayandar, Navi Mumbai Pune Kanpur, Bareilly Agra & Lucknow 14. GAIL 15. HPCL 16. Bhagyanagar Gas Ltd. 17. Tripura Natural Gas Ltd. 18. Aavantika Gas Ltd. 19. Haryana City Gas 20. GAIL Gas Ltd. Vadodara Ahmedabad Hyderabad, Vijaywada & Rajahmundery Agartala Indore, Gwalior Gurgaon Dewas, Kota, Sonepat & Meerut 21. JV of DSM Infra Tech. & Saumya Mining Pvt. Ltd. Mathura 22. Charotar Gas Anand/Kheda Cities authorized for CGD by Central Government and PNGRB y S. No. 1. 2. Cities for which authorizations have been issued by Central Government Name of Entities Area of Authorization Confirmation issued by PNGRB for Geographical Area Mumbai & Greater Mumbai Delhi Authorization pending Thane, Navi Mumbai & Mira Noida & Greater Noida, Gurgaon & Faridabad Nil Nil Mahanagar Gas Limited Indraprasth a Gas Limited Central UP Gas Limited Maharashtra Natural Gas Limited Tripura Natural Gas Company Limited Mumba, Thane, NaviMumbai &Mira-Bhayender Delhi, Gautam Buddha Nagar (Noida & Gr. Noida), Gurgaon and Faridabad Kanpur & Bareilly Pune including PimpriChinchwad area Agartala, Tripura 3. 4. Bareilly & Kanpur inc!. Unnao & Rania Pune, Pimpri Chichwad, Chaken, Talegaon & Hinjewadi - 5. Entire 6. 7. 8. 9. 10. y Green Gas Limited Lucknow, Agra & Taj Trapezium Zone. Aavantika Gas Limited Bhagyanagar Gas Limited GAIL (India) Limited Sabarmati Gas Limited Indore, Gwalior & Ojjain Hyderabad& Vijaywada Vadodara Ghandhinagrr Mehsana Sabarkantha CGD Network Agra Indore & Ujjain Hyderabad& Vijaywada Ghandhinagar Mehsana Sabarkantha Lucknow Gwalior Nil Entire Nil CGD Networks which were earlier selected by PNGRB and subsequently authorized by Central Government Entities authorized JV of DSM Infra Tech & Saumya Mining Pvt. for district Thane. build and operate city gas distribution network. Noida/Greater Noida/Ghaziabad (U.Name of the city Dewas Kota Sonepat Meerut Mathuaa Kakinada Gail Gas Ltd. 3 1972 Vadodara 4 1980 Delhi ONGC Colony at Mehsana & Sibsagar Duliajan Sibsagar Surat. Further IGL has applied to PNGRB for Ghaziabad.P. Gurgaon and Gautambudh Nagar (Cities of Noida and Greater Noida) to PNGRB on the basis of authorisation granted by Central Government. Bharuch 5 198286 1985 1986 198991 6 7 8 . No 1 2 Year 1880 1900 City Kolkata Mumbai Company Calcutta Gas Company Bombay Gas Company Vadodara Municipal Corporation Delhi Municipal Corporation ONGC Assam Gas Company Assam Gas Company Gujarat Gas Company Ltd. Faridabad/Gurgaon/Sonepat/Panipat (Haryana) with PNG supplies in phases spread over next few years subject to necessary approvals from appropriate authorities. which is being considered by PNGRB. Ankleshwar. Bhagyanagar Gas Ltd. Gail Gas Ltd. PNGRB has considered the authorisation granted by Central Government to 3VI/S Indraprastha Gas Limited (IGL) for city of Delhi to lay. MGL has submitted document. City Gas Projects in India S. Ltd. Gail Gas Ltd. including MiraBhayendar and Navi Mumbai to PNGRB on the basis of authorisation earlier granted by Central Government. PNGRB has also considered authorisation granted by Central Government to MGL for Greater Mumbai and allowed exclusivity for 3 years. IGL has plans to cover NCT of Delhi. and has allowed IGL exclusivity for 3 years. Gail Gas Ltd.). IGL has submitted its documents pertaining to the cities of Faridabad. Ltd. Vapi Gas Kanpur. Maharashtra Natural Gas Ltd. Indraprastha Gas Ltd.09 Discussion with PNGRB on 20. 13 14 Gandhinagar. Green Gas Ltd. Bhagyanagar Gas Ltd. Lucknow CUGL & GGL As in April 2009 the Authorisation Status of Entities is as follows: Authorisation Status of Entities Geographical Area Authorised by MoP&NG Delhi & its suburbs.01.01.Vadodara Entities Other Than Gail JVCs in CGD Business Sate Ahmedabad Gujarat Surat. Kadi. Mahanagar Gas Ltd. Distt. Central UP Gas Ltd. viz.2009) Mumbai Discussion with PNGRB on 21. Ankleshwar & Bharuch Gujarat Gas Co. Gas/Sabarmati Morbi.09 Discussion with PNGRB on 02. Rajkot. Bhagyanagr Gas Ltd.01. Adani Energy Ltd. NOIDA (Gautam Budh Nagar).09 - Authorised Entity Indraprashtha Gas Ltd. Agra Agartala.9 10 11 12 1994 1995 2004 2005 200607 2006 Mumbai Delhi Vadodara & Ahmedabad Hyderabad Mahanagar Gas Ltd. City Company Adani & HPCL . Thane including Navi Mumbai & Mira Bhayander Indore. Gurgaon & Faridabad Mumbai.02. Tripura Vadodara Authorisation accepted by PNGRB NCT of Delhi (01. Tripura Natural Gas Company Ltd. GAIL (1) Ltd. GSPC Mehsana. . Gwalior & Ujjain Hyderabad & Vijayawada Pune including Pimpri-Chinchwad area Kanpur & Bareilly Lucknow. Avantika Gas Ltd. No. (MNGCL) Tripura Natural Gas Company (TNGCL) Bhagyanagar Gas Limited (BGL) Sabarmati Gas Limited 1 2 1. Dibrugarh.2 - 2 5 1. (AGL) Central U. Simaluguri. Entity Mahanagar Gas Limited (MGL) Indraprastha Gas Limited (IGL) Aavantika Gas Ltd.3 - 3 7 1 - 1 8 1 - 1 9 1.2 . Assam Gas Company Ltd. the status of City Gas Projects in India is as follows: Geographical GAs (Under Areas (GA) Total Construction) (Operating) 2 2 S. Moran. Rajkot.2 4 3 1 1.2 3 4 1. (GGCL) Maharashtra Natural Gas Company Ltd. Sivsagar. Naharkatiya. Tinsukia GSPC Gas VMSS Sabarmati Gas Great Eastern Energy Corp.2 - 2 6 1. Nazira. (CUGL) Green Gas Limited (GGL) Gujarat Gas Company Ltd. Gas Ltd. Ltd. Digboi. Surendranagar Vadodara Gandhinagar West Bengal Assam Asansol Duliajan.2 2 10 1.2 2 . As per February 2009.P.Hazira. 000 km of natural gas pipelines and 10.1 - 1 1. Vadodara Mahanagar 14 Seva Sadan (VMSS) Adani 15 Energy Ltd.4 4 2 2 India currently has a CGD network in 21 cities with 0.6 8 1. is inadequate to meet the country's requirements except oil. including 8.11 GAIL (India) Ltd. (HPCL) Charotar Gas 13 Sahakari Mandali Ltd.45 million vehicles on compressed natural gas (CNG). (AGCL) Great Eastern Energy 20 Corporation Ltd. 17 18 Siti Energy Ltd.673.688 MMSCMD Total Investment : Rs 1. (AEnL) GSPC Gas 16 Company Ltd.2 10 1 1 1.909 crore . 1. Recent Developments As in April 2009: y y y y y Total Gas Consumption : 3. But the total pipeline infrastructure.8 1.000 km of product pipelines.1 - 1 1 - 1 2 1. (SEL) Haryana City Gas 1. (GEECL) 1.1 - 1 Hindustan Petroleum 12 Corporation Ltd.2 3 Assam Gas 19 Company Ltd.93 crore No of CNG vehicles catered: 458804 No of household connected: 511709 Tentative replacement of fuel in quantity as well as in monetary terms: o Petrol = Rs 2.85 million household connected and 0. of Potential Cities 37 8 17 13 17 25 5 26 14 5 12 6 4 28 31 Projected Demand MMSCMD 5.9 24 104 Delhi & Noida Mumbai. Mira Bhayandar.16 0.5 Projected Investment (in Rs/Cr) 2510 2500 955 1830 1305 9580 250 1945 1260 485 4040 640 835 2975 3750 144.67 5.5 Agartala Indore 27 9.52 0.28 1. Cr.97 8. Navi Mumbai Pune Kanpur 115 City Investment Made (Rs.61 19.8 8.66 2.02 5 1. Thane.244 crore LPG = Rs 183 crore Investments made by GAIL/JVCs for CGD Projects (As in April 2009) Company IGL MGL MNGL CUGL Bareilly Lucknow GGL Agra Vijayawada BGL Hyderabad TNGCL AGL Ujjain Vadodara GAIL Agra & Ferozabad Total CGD Likely Roll Out Plan (as in April 2009) State Andhra Pradesh Assam Bihar Punjab & Himachal Pradesh Haryana Gujarat Jharkhand Karnataka Kerala Madhya Pradesh Maharashtra & Goa Orissa Rajasthan Tamil Nadu Uttar Pradesh & No.o o Diesel = Rs 2.95 7.5 3.8 1966.08 1.6 88 .89 2.91 3.) 750 695. Noida. Khambhat. Ankleshwar. Meerut (Uttar Pradesh). Padra. Anand. Agra. Sarigam. Dhaban. Ankleshwar. Surat. Nar. Icchapore. Morbi. Gandhinagar. Holol. Surat. Khathlal. Vasva. Delhi. Kawas. Kanpur. Vapi. Shahdol (Madhya Pradesh) and Chandigarh (Union Territory). Suwali. of cities with CNG/PNG facilities 3 8 1 26 2 2 5 1 . Compressed Natural Gas (CNG) is being presently supplied to vehicles in the following cities:y Mumbai. Gandhinagar and Hazira. Kim Bardoli. Nazira. Dakor. Hazira. Sidhpur. Pardi. Sivasagar. of Pondicherry). Dhegam. Valsad. Piped Natural Gas (PNG) is being presently supplied in the following cities and towns:y Delhi. Digboi. Bhilad. Wankaner. Palanpur. Kalol. Bhatlai. Unjha. Ahmedabad. Haxira.Uttarakhand West Bengal Total Board are Kota 50 298 4. As in November 2009. Kallol. Junagam. Sonipat (Haryana). Vijayawada. Naharkatiya. Ghaziabad (Uttar Pradesh). Godhra. Navsari. Mumbai. Years By 2010 By 2013 By 2018 Geographical Areas 85+ 125 250 City gas distribution (CGD) essentially consists of Piped Natural Gas (PNG) and Compressed Natural Gas (CNG). Baidhana. Piped Natural Gas is being supplied to 513068 domestic. Vadodara. Damen. 1433 commercial and 69 industrial consumers all over the country. Mathura (Uttar Pradesh). Gandhinagar. Lucknow. the statewise number of cities/towns covered with CNG or PNG facilities in the country is as follows: State Andhra Pradesh Assam Delhi Gujarat Haryana Madhya Pradesh Maharashtra Tripura No. Moran. Tankara. Chankeda. Chotila. Simaluguri and Tinsukia. the cities/towns in Gujarat which are receiving CNG supply at present are Anand. Rajgiri. Vadodara. Dewas (Madhya Pradesh). Palej. Ankleshwar.62 74. Bharuch. y As in July 2009. Ahmedabad. Rajahmundry (Andhra Pradesh). Agartala. Petlad. Dhrampur. Vidyanagar. Kakinada (Andhra Pradesh). Mira-Bhayandar. Hyderabad. Agartala. Thane. Nadiad.T. Allahabad (Uttar Pradesh). Rajkot. Duliajan. Jhansi (Uttar Pradesh). Dibrugarh.34 2310 37170 As in February 2009. Bharauch. Surat. Bharuch. Chikhali. Umreth. Ahmedabad. Damka. Mora. the cities for which Expressions of Interests (EOI) have been invited for CGD projects by Petroleum & Natural Gas Regulatory (Rajasthan). Yanam (U. Morbid. PNGRB has also formulated a Roll-out Plan for the development of CGD networks in various other geographical areas in the years to come. 5%.P.5%. Maharashtra Govt. FIIs/FIs/ Public and others: 50% GAIL: 22. IOCL: 22. FIIs/FIs/ Public and others: 50% GAIL: 22. State Govt: 5%. Maharashtra Delhi/NCR Uttar Pradesh Mumbai and suburb Delhi & suburbs Kanpur.5%.Nil) GAIL: 22.75%). Public and others: 51% GAIL: 22. there is no pilferage of CNG and PNG.5%. lndl.Uttar Pradesh West Bengal Total 7 5 60 Ministry of Petroleum & Natural Gas has finalised µVision-2015¶ of the Oil sector for µConsumer Satisfaction and Beyond¶. HPCL: 22. HPCL: 22.5%. State Govt: 5%.5%). Maharashtra Natural Gas Ltd. State Govt: 5%. BPCL: 22. Mahanagar Gas Limited Indraprastha Gas Limited Central UP Gas Limited Green Gas Limited Bhagyanagar Gas Limited Comml. Gas Ltd.5%. Aavantika Gas Ltd. Central U.5%. BPCL: 22. As the natural gas is supplied to CNG stations through pipes at high pressure and to PNG consumers without any intermediate handling using equipments of international standards. 34 16 Nil Nil Nil 373210 991 133288 336 Nil Nil Nil Nil Nil Nil . GAIL (India) Limited GAIL Gas Limited Equity Stake (As per JVA) GAIL: 22. AGCL: 10%. Public: 20% (Current . British Gas: 35% (Current 49.75%). 1 2 3 GAIL JVs States Name of the City Name of the Company PNG Consumers Dom.: 10% (Current 0. No. JV Partners GAIL (India) Limited & BPCL GAIL (India) Limited & British Gas GAIL (India) Limited & HPCL GAIL (India) Limited. BPCL: 22. Delhi Govt: 5%.5%. Tripura Natural Gas Ltd. FIIs/FIs/ Public and others: 50% GAIL: 22. Bareilly Lucknow. FIIs/FIs/ Public and others: 50% -GAIL : 100% Status of PNG Activities Undertaken by: y S.5%. No. AGCL & TIDC GAIL (India) Limited & BPCL GAIL (India) Limited & IOCL GAIL (India) Limited & BPCL GAIL (India) Limited & HPCL Not a JV A 100% subsidiary of GAIL (India) Limited 2 3 4 5 6 7 8 9 10 Mahanagar Gas Ltd. FIIs/FIs/ Public and others: 50% GAIL: 29%. TIDC: 10%.5%.5%. wherein efforts would be made to provide CNG/PNG facilities to 200 more cities by the year 2015. GAIL's Joint Ventures (As in July 2009) Sr. Green Gas Ltd. 1 Name of JVC Indraprastha Gas Ltd. State Govt: 5%. Bhagya Nagar Gas Ltd. FIIs/FIs/ Public and others: 50% GAIL: 35% (Current 49.5%. Agra 4 Andhra Vijayawada. State Govt: 5%. etc. Anand & Near by Villages Gandhinagar 2. Guwahati & others Asansol & Durgapur Mooradabad Vadodara Mahanagar Seva Sadan GSPC Charotar Gas Sabarmati Gas Limited HCDGCL Adani Energy Limited Assam Gas company Ltd. These pipelines will pass through various areas in the states of Andhra Pradesh. CGD projects will develop in cities/areas in proximity to these pipelines. Orissa. Ltd. West Bengal. Maharashtra. States Gujarat Name of the cities Surat.000 20. No.000 - Vadodara Rajkot. Rajasthan.000 23. Siti Energy Ltd. S.000 85.Pradesh 5 6 7 Tripura Gujarat Madhya Pradesh Hyderabad Agartala Vadodara Indore and Ujjain Total Tripura Natural Gas Company Limited GAIL (only CNG) Aavantika Gas Company 6570 106 19 69 513068 1433 y Other Companies 1. Karnataka. Haryana. HPCL Domestic Consumers 2. Punjab. Dadri-Bawana-Nangal. 5. Ankleshwar. Chainsa-Gurgaon-Jhajjar-Hissar. Assam West Bengal Uttar Pradesh Duliajan. Faridabad 3. Kerala.000 20. Bharuch. Once these pipelines are commissioned. 4. . Ahmedabad Name of the companies Gujarat Gas Company Limited Adani Energy Limited. Bihar and Jharkhand. Haryana Gurgaon. 1. Chennai-Tuticorin and Chennai-Bangalore-Mangalore Pipeline.Kakinada-Basudebpur-Howrah. Tamil Nadu. Vijaywada-Nellore-Chennai. Dabhol-Bangalore. Murbi. Uttar Pradesh. namely. etc. Jagdishpur-Haldia. Government has authorised nine new trunk natural gas pipelines. Great Eastern Energy Corp. Kochi-KanjirkkodBangalore/Mangalore .00. Accordingly PNGRB put up the EOIs for public notice dated 24th June.263 0.036 0.054 0.009 .464 0.025 0 0 0 0 0 0. M/s Reliance Gas Company limited (RGCL). 29th August.103 Cities Delhi Mumbai Thane Company IGL Avg.842 1. 6th October.005 0. Gas Sales Domestic 0.054 0. RGCL and M/s GAIL Gas submitted EOI for 60 cities and 7 cities respectively. CNG Gas Sales 1.009 0. 2006'.006 0 0 0 0 0 0.040 0.033 0.034 0. the Government of India has enacted 'The Petroleum and Natural Gas Regulatory Board Act.054 MNGL 0.054 0.033 0.040 0 009 0.005 0 003 GAIL 0.080 MGL Mira Bhayandar Navi Mumbai Pune Kanpur CUGL Barrielly Lucknow GGL Agra Vadodara Vijayawada BGL Hyderabad Agartala TNGCL 0. The region wise breakup of the same is as under: Region No of cities Region No of cities Region No of cities Region No of cities RGCL North East West South Total 16 1 23 20 60 GAIL Gas North East West South Total 7 2 5 GGCL North East West South Total 2 2 Torrent North East West South Total 1 1 Power Present City Gas Consumption in India (As in April 2009) Avg.005 0. PNGRB has received expression of interests (EOI) from M/s GAIL Gas limited. M/s Gujarat Gas Co Ltd (GGCL) and M/s Torrent Power.000 0.692 1.005 0.165 0.000 0.006 0. As on August 2008.In order to promote investment from public as well as private sector for laying trunk natural gas pipelines and city/local natural gas distribution networks throughout the country.047 Avg. 28th June. Gas Sales Commercial & Industrial 0. 17th Nov and 21st Nov 2008.037 0 0 0 0.013 0 0.080 Total Sales (MMSCMD) 1. GGCL submitted EOI for two cities in Gujarat and M/s Torrent Power submitted EOI for one city also in Gujarat.071 0. Further.441 0 0. Total Excludes CGD project other than GAIL Cities GAIL/JVCs of GAIL are augmenting the CNG infrastructure and number of CNG stations in the respective cities to meet the increased requirement of conversion of vehicles to CNG.2 0.20 160 0.04 4.03 CGD Projects (MMSCMD) IGL MGL CUGL GGL MNGL BGL AGL TNGCL GAIL GAIL Gas Ltd.20 0.090 0. Navi Mumbai.464 0.03 0.40 0.20 0. Gwalior & Ujjain Agartala Vadodara Various Cities 0.002 0.04 4.2336 Gas Supply to CGD Projects (As in April 2009) Estd.New Proj.012 4.03 0.054 8.850 0.40 0..66 0. Addl. Pimpri.50 0.40 0.401 0. the Ministry of Petroleum & Natural Gas (MoPNG) has formulated the gas utilisation policy for utilisation of natural gas produced from NELP blocks and has allocated 5 MMSCMD of natural gas to the city gas projects from 40 MMSCMD natural gas expected to be available from Reliance KG Basin fields in the first quarter of 2009.3286 0 3.15 0. Gurgaon.000 4.lndore Surat Bharuch & Ankleshwar Ahmedabad Gandhinagar Total AGL GGCL AEL SCL 0.20 1.190 0. (Updated in May 2010) Status of CGD Activities (as of August 2008) .03 Best Endeavour Basis-2009 0. Chinchwad Hyderabad & Vijayawada Indore.04 3. Noida. Faridabad & Greater Noida Mumbai.000 0.60 0. Mira Bhayander Kanpur & Bareilly Lucknow & Agra Pune.011 0.40 0.090 0.66 0.50 0. Demand 2009 Delhi. Thane. of Commercial Units presently connected 37 nos.557 6. / 1. / Qty 1.00 9 stations / 21. 4. / 1.000 nos. 31 nos. Districts Gandhinagar Mehsana Sabarkantha Total . / 524 V 4.200 nos. 2009 Source of Gas (presently only imported R-LNG) Present Source of Gas GSPC BPCL Average Availability 1.50 Lacs SCMD 1.6 Commercial Sector Qty presently sold to Commercial sector in SCMD 555 SCMD 465 V 240 SCMD 1.000 SCMD Districts Gandhinagar Mehsana Sabarkantha Total Transport Sector Qty sold to domestic sector in SCMD 28. 3.000 nos.500 7.042 SCMD 1. 16 nos.Supply of Gas to CGD Projects (Sabarmati Gas Ltd) Data as on 30th June.040 SCMD 873 nos.707 52.735 3.320 SCMD 5. if any or Spot Supply Additional overdrawal on Spot Price Basis Not Applicable Domestic Sector Qty sold to domestic sector in SCMD 2. 1.000 SCMD 15. / 2. / Qty 2.680 SCMD 7.730 1.700 8.373 6.605 nos.500 3.200 2.260 SCMD No.800 2 stations / 11. Increase Necessary Expected by Infrastructure by September-09 in September-09 Nos.50 Lacs SCMD Period of Contract Long Term for 5 years Long Term for 5 years Whether Contract is Firm/Fall back Firm Firm Overdrawal.165 SCMD No of Households connected as on 30/06/09 4.342 nos. 84 nos.216 2. 9.912 17.800 3 stations / 6.992 SCMD Present No of CNG stations as on 30/6/09 6 3 1 10 Stations Increase Expected by September '09 in SCMD 1.605 SCMD Expansion of Network -do-do-doTotal Increase in 2009-10 Nos.733 nos.200 SCMD Necessary Infrastructure by September '09 1 Additional CNG station 2 Additional CNG stations 2 Additional CNG stations 5 Stations Total Increase in stations / Qty SC 4 stations / 3.736 nos.832 13.800 nos. 770 SCMD 2.189 25. being tied up with M/s Reliance Industries Ltd.431 70.192 SCMD 34.777 SCMD 4.77. .593 SCMD Gas.770 SCMD 30. allocated by MoP&NG.207 SCMD 60.412 SCMD 20.963 Sources of Gas Expected to be tied up .19 Lacs SCMD 108 nos.343 11.224 SCMD 10.Industrial Sector Districts Industrial Sales in Lacs SCMD No of Industrial Units presently connected Total 3. Average Daily Requirement for Household & Transport Sector Districts Average daily Requirement only by Seotember 2009 Domestic Household Qty Transport Qty Total SCMD Gandhinagar Mehsana Sabarkantha Total 3.573 SCMD 9. 63 64922 72897 0. NCDC Building..54 0.51 0.071 1150 53100 0 60345 0 0.Sabarmati Gas Ltd .59 64800 71300 0.053 1000 0.Y.056 1040 3 4 Comme 1300 rcial Industri al 59000 44000 45200 46400 0 0 0 0 Total 66490 49365 50865 52098 (SCMD) 0 0 5 0 MMSC MD 0.66 58533 64576 0.66 0.2011 13300 78000 1200 725000 817500 0.Y.49 0.15 F.62 64868 72318 0. Gandhinagar .065 13500 615210 0 894051 2 0. No.82 F.55 56700 62375 0.Y.65 65003 73603 0.072 1200 56100 0 63451 8 0.059 1080 48950 0 54988 0 0.86 Sabarmati Gas Ltd.Y.1 MMSCMD) Sabarmati Gas Ltd: Estimated Gas Demand S.2012 18200 94000 1800 1040000 1154000 1.382016 (Fax: 079- .60 64800 71760 0.2013 22300 104000 2200 1273000 1401500 1. Segme N nt o FY2010 Apr09 May09 Jun09 Aug09 Nov09 Dec09 Jan10 Feb10 Yrly Mar-10 Averag e Jul-09 Sep-09 Oct-09 1 Domesti c 8600 Househ old CMG Sub Total MMSC MD "%00 0 4050 4335 4640 4960 5300 5675 6075 6500 6960 7450 7975 8600 6043 2 48600 51300 51300 52650 57610 0.070 1125 51700 0 58765 0 0.058 1060 476600 54000 59300 0.58 73600 52650 55635 55940 0.073 1250 58000 0 65414 7 0.072 1175 54800 0 62093 5 0.Progress Report as in February 2009 Requirement of Gas for Household and Transport Purposes Month-wise Build Up Sabarmati Gas Ltd (SGL): Estimated Gas Demand (Average SCMD) S .52 535270 566475 0.2010 8600 65000 1300 590000 664900 0. Sector-16.66 F.40 F.062 1100 503000 63450 69525 0.Y. 1 2 3 4 Segment Domestic Household CNG Commercial Industrial Total (SCMD) MMSCMD F.2014 23900 115000 2400 1720000 1861300 1.074 0.57 Remarks : Out of Industrial Sales 17% Account for Power Generation (0.056 1020 0.074 1300 59000 0 66490 3 0. Plot No 272-273. 3. Long Term Loan: Rs 273 crore as long term loan was tied up in December 2007 with a consortium of five banks (SBI.500 12.) Santej Mehsana District: Mehsana (4 nos. Individual Shareholders Total Physical Progress Location/Segments Gandhinagar District: Gandhinagar Adalaj Trimandir Koba Pethapur Khoraj Mansa Dehgam Kalol (2 nos.1 MMSCMD on long-term basis. SGL has signed MoU with GSPC and BPCL for supply of gas on best endeavor basis. The bids are expected this month (February 2009). Sourcing of gas by Sabarmati Gas for purpose other than Domestic and Transport: GSPC. Short fall in availability and market demand will be met through spot purchase. 2. The face value is Rs 10/Equity Share. SGL's endeavor is to complete the Equity Closure process by end of March 2009. including 0. Equity Closure: Promoters (BPCL & GSPC/GSPL) have contributed Rs 80 crore approximately as share application money. PUW Done Done PUW PUW PUW Done PUW PUW Done/one PUW PUW PUW Done PUW Done PUW PUW PUW PUW Done PUW PUW PUW Done Done PUW Domestic Transport/CNG Commercial Industrial No. 2.500 25.20% 100% .90% 50. SBI Caps has been appointed as Consultant for Equity Closure.90% 24. OBC & SBT). Sales volume-0. P&SB. The shareholding pattern of SGL is as follows: Share holder Bharat Petroleum Corporation Ltd.23249073) 1.35 .0 2.0. Gujarat State Petroleum Corporation Ltd. Amount of non-APM gas presently being used: Entire gas being marketed by SGL is nonAPM. Term-Sheet has been agreed and finalized with four prospective financial institutions.200 50. of Shares % of Issued Capital 12. BOB.) Done Done/ Three nos.5 MMSCMD Financial Closure of SGL: 1.200 24. Present Equity Structure of the Company: The shares of SGL are not listed on any stock exchange. SGL has 88 nos. with aggregate connected load of 0.000 PNG customers spread in Kalol. are at various stages of execution. SGL has 6. operate or expand city or local natural gas distribution network) Regulations.58 MMSCMD. information in respect of CGD network of SGL in the districts of Gandhinagar. As on 31 December 2008 Total Connected DCQ Qty in SCMD Locations SGL 16415 Through Asset Transfer BPCL 45300 30000 66175 GSPL 0 Santej Ambapur Kalol . 2008: Vide its letter of 19th Nov-08. Mehsana.Chhatral Amipura/Unawa Visnagar Vijapur Kadi Palvasana Shobhasan Kaiyyal Sabarkantha District: Himmatnagar (3 nos. 3. Himmatnagar and Mehsana. Request to grant exclusivity for the period as applicable under the Regulation without curtailing the areas authorized by the Central Government has also been sought.) Prantij PUW PUW PUW PUW PUW PUW Done Done PUW PUW PUW Done PUW Done Done Done PUW PUW PUW Done Done PUW Done/ Two PUW PUW Done PUW Done PUW Abbreviations: Done . Kadi. Sabarkantha in the state of Gujarat have been submitted under Schedule H under Regulation 17(2) to PNGRB. PNG: As on 01-02-09.1 MMSCMD (17 % of total). Customer care centers at all these locations are functioning to provide high standard of customer service. 2. SGL has 6 CNG stations (all online) functioning and 17 nos. build.Project under way Summary: 1.where already completed PUW . y y Power generation customers aggregate to 0. Discussions with PNGRB under Regulation 17 of PNGRB (authorizing entities to lay. Industrial Customers: As on 31-12-08. CNG: As on 01-02-09. Kadi Himmatnagar Chhatral Mehsana A. No 1 2 3 4 5 6 7 Customer Name Mother Dairy Kalptaru Papers Ltd Veer Plastics Gopala Polyplast Premier Synthetics Sintex Industries Arvind Mills Total Area Bhat Santej Santej Santej Santej Kalol Santej Industry Type Power Generation Power Generation Power Generation Power Generation Power Generation Power Generation Power Generation DCQ scmd 30000 7000 6800 6250 2000 50000 0 1020S0 As on 31 December 2008 Product Mix Ceramic Metal (steel/alloys) Crockery Power Generation Dairy Total Qty (SCMD) 283100 51000 4500 102050 45000 % Sectorwise 49 9 1 17 8 . Grand Total 620Q0 108600 37250 39500 620240 18000 10000 5000 5000 5000 5000 48000 359940 93300 583240 130000 130000 Power Generation Customer Details (As on 31 December 2008) S. CNG Total C. Industrial Total Gandhinagar GSRTC CNG Mehsana CNG Himmatnagar CNG Kadi CNG Kalol CNG Koba CNG B. Others CNG Total 49590 48000 583240 9 8 100 . IDFC Project Equity and Unit Trust of India are the other stakeholders of Sabarmati Gas. Government officials are convinced that Sabarmati Gas would grow faster if it is merged with a bigger player like GSPC that has a consumer base of over one lakh. IFCI Venture Capital Funds. said people close to the development. SGL also gets R-LNG by long-term contracts from the Dahej & Hazira terminal. A BPCL spokesperson declined to comment. GSPC Gas is a fully-owned gas distribution company of GSPC. SGL expects the total CNG sales to rise to 140. (SGL) in 2009. SGL will install CNG dispensers at Essar's 26 retail outlets (RO) and Essar is to manage the fuel sales. However. SGL is a JV between Bharat Petroleum Corporation Ltd. with 16% equity stake.000 kg/day. a state government-owned oil and gas major. ³The government has approved the merger and BPCL. Bhat in Gandhinagar district and Idar in Sabarkantha district. which includes 12 mother stations and 3 daughter stations. it can only sell these supplies as CNG or PNG (piped natural gas). which is about 70 per cent of its gas supplies. is close to merging unlisted unit Sabarmati Gas with its gas distribution subsidiary. (BPCL) and Gujarat State Petroleum Company (GSPC) and is the only CGD entity to receive D6 gas supplies. It began receiving 77. while Sabarmati Gas is promoted by GSPC and BPCL which own 25% equity stake each. GSPC Gas. and GSPC are in the process of finalising the deal. has given its in-principal approval to the merger and a swap ratio is expected to be completed within a month. 2011 at Essar's RO in Unnav town near Unjha in Mehsana. Dehgam and Mansa cities. By March 2012. ³Merger of y y y . which is the nodal ministry for energy in the state. It seems to be a win-win deal for Essar and SGL as the former can enter into the CNG business through already established ROs and the latter does not need to procure lands for setting up CNG stations. According to the agreement. Merger GSPC close to merging unlisted unit Sabarmati Gas with its gas distribution subsidiary to increase its presence in gas distribution business in Gujarat : 5/12/2010 12:00:00 AM Gujarat State Petroleum Corporation (GSPC).000 kg/day of CNG.492 cubic metres per day gas in September 2009. to increase its presence in the gas distribution business in Gujarat.´ said a person involved in the process that cleared the deal. The first CNG dispensing unit was commissioned on February 9. selling 85. SGL plans to commission another six CNG pumps in 2011 in Gujarat at Essar's ROs at Visnagar and Vadnagar in Mehsana.y SGL to set up CNG dispensers at Essar Retail Outlets A compressed natural gas (CNG) Joint Venture (JV) agreement was signed between Essar Oil and Sabarmati Gas Ltd. which is a shareholder in Sabarmati Gas. As the demand of CNG is on rise in Gujarat. the need for setting up of infrastructure has arisen. The company operates 15 CNG stations in Gujarat. Gujarat principal secretary for energy and petrochemicals DJ Pandian and GSPC managing director Tapan Ray couldn¶t be reached for their comments. The department of energy and petrochemicals. even though almost 45% of gas available in India is allocated to power. Sabarmati has booked an earning of over Rs 250 crore in 2008-09. we are all waiting for it like a mirage in desert. On the other hand. gas being the fuel of 21st Century is not only illusory but. and with highly positive y . Perhaps after the KG Basin gas comes the situation may change. from the existing six lakh connections. It is targeting to add another 10 CNG stations and one lakh consumers in the next four years.´ said a top official with one of the city gas distribution companies. ³BPCL. Gujarat is the most lucrative market for CGD players and is expected to scale up to over 20 lakh gas connections in the next four years. Under the direction of the Supreme Court. Compressed Natural Gas (CNG) for transportation is even more recent. GSPC Gas posted an income of over Rs 850 crore for the same year. For example. in spite of gas being an environment friendly fuel.K.. and Organisation Dynamics India. at least in India. 2008] Gas distribution in Indian cities through pipeline network is relatively a new concept. U. It will provide better scope for expansion. In 2006. Energy Management International. would be issued GSPC Gas equity in lieu of their present stake in the company. In addition. BPCL could get benefit from the gas distribution network expansion. Even 10 years ago. I outline below the substance of the opening remarks I made : y Since the beginning of 1990's. along with other partners.´ said the BPCL official. The proposed merger would give BPCL a better presence in Gujarat¶s city gas distribution. we are hardly about 7% of the total installed capacity based on gas. it has not been able to occupy the space that we were all looking forward to. It will also attract better profitability. BPCL¶s presence is limited to only Gandhinagar in Gujarat. requesting anonymity. In whichever towns/cities the piped gas supply for consumers and CNG for transportation (for example in Delhi) has been brought into use.000 and manages 14 CNG stations. According to industry analysts. the 21st Century would be dominated by the most important energy resource i. most of the energy professionals were of the view that if the 20th Century was of coal and subsequently of oil.e. for consumers. It has 17 CGD networks and 64 CNG stations. BPCL had formed the joint venture with GSPC for development of CDG networks and related infrastructure in the state. especially in expanding the CNG network. A number of important issues emerged. Overall availability of gas has obviously constrained the process of large scale shift in transportation from liquid fuel to compressed natural gas.y y Sabarmati Gas with GSPC Gas company would result in better synergy for both the players. Sabarmati Gas has a consumer base of 20. the piped gas supply system. ³We have assessed the financial feasibility of the merger. in power generation. February 4. I participated partly in this conference and chaired one of the key sessions dealing with Investment Opportunities in City Gas Projects. the first Euro Asian Conference Cum Exhibition was organised at Delhi by National Engineering and General Industries India. A number of projections were made.´ said a BPCL senior executive. when the 21st Century was yet to arrive. But somehow. Recently. Challenges of City Gas Distribution [R V Shahi's Weekly Column for Infraline. there is a dramatic effect not only on convenience to consumers but also it has brought about a significant positive impact on environment (less air pollution). Therefore. gas. accounting for over 35% of India¶s gas consumption. cities like Delhi and Mumbai did not have. and the whole issue need to be dispassionately examined and appreciated keeping in view entirety of the situation and intersectoral requirements. and taking up new cities has no doubt been the lack of availability of sufficient amount of gas. if gas was available. Obviously. We do have Petroleum Regulatory Act . But. Historically power and fertiliser. in a period of last 8 to 10 years is not something which we energy professionals in general and those energy professionals. The argument of the power sector has been that it is a prime mover of every segment of economy and therefore has the potential of large scale multiplier effect on economy. One of the ways to supplement the gas. Similarly good agricultural output is essential for food security of the country. its maintenance. the shortage has caused under utilisation of capacities. though valid from the point of view of lack of availability. When the domestic gas is delivered to consumers. it is around 6 dollars per million BTU. Therefore. The whole country hoped that when the Petroleum Regulatory Bill becomes an Act. In fact. and more importantly highly unpredictable and erratic price behaviour. at a conceptual plane. It appears that the CIF price of LNG at terminal. is about 3 dollars per million BTU (based on the Administered Price Mechanism). the city gas company could legitimately claim to be ranked in excellent category. in the whole country hardly 8 lac homes have been provided. The overall utilisation of gas based power plant capacity in the country is less than 70%. One does not know why and how the gas suppliers have linked the movement of gas price with that of crude. when the whole issue of pricing is examined by the Petroleum Regulatory Board the true picture will emerge. it has not been possible for the power sector to embark upon large expansions through gas based power generation capacities. Even in Delhi the level of penetration is hardly 3%. with the idea that liquefied gas would be imported. This is on account of the additionality of costs that get added. With this type of a price level. a substantial amount of road transportation in Delhi has shifted to CNG.000 MW) remains unused for want of gas. whereas coal based plants run at more than 80%. in cities where it exists. of India Secretaries and other Senior Officers). but a lot more remains to be done in Delhi and more so in other towns and cities. In a period of 10 years the crude price has moved up almost 10 times from about 10 dollars a barrel to 100 dollars a barrel. at present could be as high as 8 to 9 dollars per million BTU and therefore after adding the cost of regasification and transportation etc. I recall. As regards domestic piped gas supply. which include the cost of infrastructure of distribution. have occupied the largest share (almost 85%) of the total supply of gas. overheads and profit margin of the gas distribution company. In spite of this. I am rather reluctant to rate the gas distribution company even as Average for the reason that the company's response to enlarge the coverage and provide the service to more customers is somewhat indifferent. However. I can authentically say that as a service provider for the existing customers. as one wanting to be a customer from an important locality close to All India Institute of Medical Sciences. We are well aware that as it is. our inability to service both existing and prospective customers in a professional manner. It has really been very slow. the Petroleum Regulatory Board will try to balance the interests of all the stakeholders including customers and therefore will determine price with such an approach. in terms of coverage. The average price at which the natural gas is supplied by Gas Authority of India Ltd. which is supplied through domestic production. any long term planning of city gas distribution get severely constrained. The rate of growth. As a customer of piped gas supply for almost 5 years in Bapa Nagar (the Government Colony for Govt. can be proud of. regasified at these terminals and then the gas after regasification will be supplied though network of pipelines. and gas plants. who are engaged in city gas distribution in particular. This brings out. We are also aware that both these sectors continue to put forward their arguments for even higher allocations. One of the reasons of the slow pace of enlarging the city gas distribution network. the statutory authority viz. the delivered price to bulk buyers will be almost 10 dollars per million BTU. two important inputs for industry and agriculture. in the beginning of 10th Plan (2002) there was an ambitious programme for setting up a chain of LNG terminals both on Eastern and Western coasts. almost one third of the capacity based on gas (and that works out to over 4. could run at more than 90%. is through import of Liquefied Natural Gas (LNG) and that could have provided opportunities for expanding in a significant way the customer base in the existing towns and in also covering new towns. unfortunately due to the erratic price behaviour of LNG it has not been possible.y y y y y y y y impact on pollution. the constraint of the city gas distributor. 970 crores and a profit of about Rs. Cochin.Rs. have is the Board empowered to do anything with upstream gas. Director. Senior Representative from Adani Energy. the coverage is likely to be rather limited. there is very little that the Regulatory Board can do to safeguard the interests of consumers in so far as the price of gas for them is concerned. y . all of which together bring out various aspects and issues concerning city gas distribution. Rs. 88 crores. Mumbai. 106 crores of profit and 41% of return on capital employed. which operates the system in Delhi. Equipment manufacturers are not able to project the demand for such equipment which would require gas as the fuel and therefore their restricted availability leads to further less demand of gas by consumers. had even better financial results . are summarised below : y In India at present we have city gas distribution in very limited places which include Delhi. There are a number of benefits from the increased usage of natural gas through city gas distribution networks. A number of new projects have been identified for other locations and they are under implementation. Mangalore and Bangalore. These include Faridabad. A typical gas distribution network would cost around Rs. Finally the natural gas usage in an extensive manner will have a substantial positive effect on pollution control. normally the management decisions on capital expenditure for creating or augmenting the distribution infrastructure gets delayed. Perhaps. 521 crores of revenue. Lucknow. the experiences indicate that city gas distribution business is an attractive investment. Kota. The build-up of the consumer base and therefore off-take is normally low and even in a period of 9 to 10 years the reasonable level of customer penetration is not more than 50 60%. We also have Petroleum Regulatory Board. These include its impact by way of bringing down the oil intensity of gross domestic product. There are a number of regulatory issues which come in the way of decision for going ahead with the project. For the year 2006 Gujarat gas had a revenue of around Rs. which would help the country in withstanding the impacts of oil price in a more resilient fashion. ii. reducing the crude import bill of the country resulting in substantial savings in foreign exchange which can be diverted to be used for development of infrastructure. The issues which can impact development of the City Gas Projects are as follows: Since there is considerable amount of uncertainty about the availability of gas.by Director Crisil. Their return on capital employed was approximately 22%. (in case of Delhi and Mumbai. What we do not. Tripura and Calcutta.now. replacement of LPG by natural gas would reduce the LPG subsidy burden on the Government and the possibility of distributed power generation along the gas pipeline network leading to more reliable power supply. Baroda. however. Earnst and Young and Executive Director MECON. Long gestation together with low volume creates an adverse impact on the business and therefore it requires a good degree of patience. These encouraging results are clear indications of the attractiveness of the opportunity and therefore the preference of the potential investors. There are uncertainties about demand linked to uncertainties about the gas supply. the only constraint seems to be the shortage of gas supply. Even if we consider the projects in hand which will be implemented during next few years. iv. The main points of these presentations. in spite of about 10 years of operation the customer penetration is in the range of 3 to 4%). There were three presentations in this session . The Indraprastha Gas. iii. Ahmedabad. 350 to 400 crores to handle a volume of the order of 1.5 million standard cubic meters. If upstream gas price is not regulated. Permissions and clearances from the authorities invariably get delayed. Inadequate availability of skilled manpower vis-à-vis the increasing demand is emerging as a serious constraint. Some of these issues are as follows: y y y y y i. In general. Agra. vi. The cost of the new technology also stands in the way of shift in usage pattern. And. steam. To what extent similar switching is possible in cases of other equipments and gadgets needs considerable amount of study and analysis.a. some of the issues which will require more comprehensive examination to understand the challenges and issues involved in city gas distribution are as follows: Allocation of natural gas for different segments of activities is crucial. Engines used in our transport system are not the only examples. c. These are: The Government policy and directive for conversion of all official vehicles to CNG. Active CNG Associations which facilitate NOC's and licences.3% of vehicles use CNG while in Pakistan 25% of vehicles are on CNG. b. . space cooling. the regulatory mechanism guides and directs such switch over. v. y y y y y i. While highlighting the CNG experience of Delhi. In conclusion. Incentive for replacement of Diesel with CNG. this presentation also brought out an interesting comparison between what has been achieved here in India and in Pakistan. Exemption or reduction of import duty and sales tax on import of CNG refuelling and conversion equipment. power and heating. India started this initiative in early 90's while Pakistan commenced its activities in mid 80's. iii. But on the ground of energy efficiency and more importantly in the interest of pollution control. Conversion of liquid fuel using engines in transport to engines which can use CNG comes with a cost. ii. e. y Will the financial viability govern award of licence? What would do the basis on which the licence area would be determined? Will the commodity margins be disallowed? What would be the period of exclusivity during which no other player will be allowed? What would be the returns on the investment that are made for development of infrastructure? A paper presented by MECON brought out a case study of implementation of CNG in Delhi for transport. Unless using the economies of the scale principle the number of such equipments and gadgets is increased. Encouraging importers to set-up indigenous manufacturing facilities for CNG equipment. drying. Such an integration may be energy efficient but there are a number of interlinked issues which will have to be resolved. lighting. it would be relevant to study the various initiatives put in place by them for an appropriate adaptation in our own country. Right-of-way problems become highly challenging to resolve and to proceed with the project. Fertiliser brings out the strengths of its own argument. feed stock. d. Power sector advocates for increasing the present level of consumption on the ground of its multiplier effect on economy. Other industries which also need energy y y i. the required cost effective level will not be achieved. The reason for this large difference is because of the fact that Pakistan has been able to set-up and commission more than 1700 CNG stations while in India we have only 350 such stations.5 lacs. number of vehicles which use CNG in India is approximately 4 lacs while in Pakistan the corresponding number is 15. it highlighted the problems and challenges for creating the infrastructure network in an existing city and particularly through areas which are thickly populated. So far. iv. in that context. Since the progress in Pakistan on this front has been significantly better than we have been able to achieve in India. Granting licences for setting-up compressor facilities. One of the papers presented emphasised the need for single switch energy usage which could include cooking. The paper also highlighted the key factors which have contributed to the success story of Pakistan. One of the reasons that different forms of energy uses is not getting integrated is lack of availability of latest equipment which could use gas as the fuel and be more energy and environment efficient. In India hardly 2. This principle will continue to hold good. some of them may remain somewhat under-utilised in initial years. cannot be in a position to evolve and implement a holistic approach. initially the infrastructure remained comparatively under-utilised but soon their utilisation became so high that not only the short falls of the past were made up but continuing increase in demands yielded good financial results. And. They all need massive expansions and developers are bound to benefit in the medium and long terms. The issue requires a thorough quantitative analysis. there would be a totally arbitrary price for upstream gas and regulation at downstream will lose its meaning in view of a given price of upstream gas. Infrastructure developers quite often become victim of an inadequate demand syndrome. railways. small and medium enterprises and commercial establishments is an important consideration. responsibility and commensurate authority. and in fact. in Indian context. There is always a paradox of infrastructure first or demand first. in the short term. therefore they need to wait till such a neutral point (or end point) is reached. Petroleum Regulatory Board must have enlarged function. SHAHI . Mere qualitative presentations and statements may not lead us to authentic and reliable conclusions. airports etc. explain their own prospectives. If upstream gas is left to market forces. and implication of substitution when comprehensively and quantitatively analysed on the other. may lead us to a synthesisation of all the concerned issues and therefore may lead us to a reliable conclusion. the development of infrastructure must be taken up rather than waiting for achievement of a level of demands which can justify the investment. even though. highways. the present market being totally imperfect in view of serious mismatches between demand and supply and hardly any trace of competition. Copyright : R. the infrastructure is not fully utilised in the short term and therefore is not able to yield the acceptable return. The desirability of substantial enlargement in the level of customer penetration on piped gas supply particularly to domestic consumers. unless it is empowered to cover both upstream and downstream gas. They feel that if they invest. in fact its availability leads to more demand. Petroleum Regulatory Board. iii.V.ii. The present regulatory framework in the gas sector is totally inadequate. They fail to recognise a basic fundamental that in case of infrastructure. transport. The objective has to be the energy efficiency. There are any number of examples when initiatives were taken keeping this principle in mind. for several years till we reach reasonably good levels of infrastructure in power. Substitution of usage pattern leading to more efficient use of gas on the one hand. the infrastructure required further expansions. On balance therefore it is highly recommended that projecting the future (and not the present demand). ports.