Government to invite technical bids for city gas networks

The bidding process for city gas distribution (CGD) networks is set to start in earnest with the Petroleum and Natural Gas Regulatory Board (PNGRB) expected to release the technical specifications in a few days.

At the third Round Table on 'City or Local Natural Gas Distribution Networks' organised by the Confederation of Indian Industry (CII), L Mansingh, chairman, PNGRB, said technical bids would be called within the next month. He was hopeful of issuing authorisation to the prospective city gas distributor by the end of March 2009.

Addressing various concerns brought up by participants, Mansingh said that there had been conscious effort at minimising the discretionary powers of the regulator at all levels. The entire effort is to create a transparent, regulatory framework through the process of consultation and feedback.

PNGRB has come out with the processing of EOIs leading to authorisation for CGD projects. The public consultation process in respect to about 70 cities has already been completed. The concerned regulations for authorisation, exclusivity of marketing and infrastructure, tariff determination have also been notified.

Mansingh clarified that adequate measures are being taken to ensure that the gas producers do not favour their own transportation and distribution entities and discriminate (against) other players. Enough regulations are specified through Affiliate Code of Conduct where the CGD players will have non-discriminate third-party access to the gas pipeline infrastructure.

B S Negi, member (infrastructure), PNGRB, gave a detailed presentation on the procedures / checklist on the process of authorisation for CGD projects and network tariff. He urged prospective bidders to ensure that there bid is compliant with all the listed requirements.