Gail fuels hopes after connecting 500 in Bengaluru with piped gas

Gail fuels hopes after connecting 500 in Bengaluru with piped gas

Submitted by alvin on Thu, 2016-08-04 10:21 Bengaluru: Piped natural gas (PNG) will soon reach more areas of the city after GAIL Gas Limited (GGL) successfully completed a pilot project through which it connected 500 households in the city with PNG.A GGL official said that 416 residents of BEL layout and 112 HSR layout residents had been getting PNG directly to their homes. And if GGL is to be believed, over 1 lakh residents would get PNG connections in the next five years at a cost of Rs749cr.GAIL's map for the City Gas Distribution Project in Bengaluru After laying a pipeline from Dabhol to Bengaluru, the GGL began offering PNG to select layouts in the city as part of a pilot project.“We have laid the pipelines from Dhabol to Bengaluru. We have covered a distance of 1160.6 kms (262 in Maharashtra, 842 in Karnataka and 66.6 in Goa),” a senior officer in GGL told Bfirst.in.Eight areas in and around the city such as Nelamangala, Doddàballapur,  Devanahalli, Hoskote, Anekal, Bengaluru North, Bengaluru South, and Bengaluru East will be supplied with PNG within the next five years. Sixty CNG stations will soon be set up for this purpose.The project was conceived in February 2015 after GGL paid a bank guarantee of Rs 5199.99 crores as an assurance to complete the work within the scheduled period of five years. “This means that we will tend to lose over Rs 5000 crores if the work is not as per schedule,” said a source.Until mid- July 2016, the firm had completed laying 330-kms of MDPE pipeline, 28 kms of steel pipeline and 80 kms of GI pipe. “We have also completed 8000 PNG domestic infrastructure and work for another 3500 infrastructure is in progress while 4800 domestic connections are completed,” said a top official, adding that 520 houses in BEL colony and HSR layout were being supplied with PNG as of now.The official said the company had so far sold gas worth Rs9.60crore. "Our industrial consumers include Rail Wheel Factory, Biocon, Federal Moghul and others. Marriot, Taj Vivanta and others are out commercial customers,” he added.Explaining about the advantages of shifting to PNG from LPG, the senior official said that for domestic users PNG is cheaper than LPG by about 15 percent with subsidy, while it is 42 percent cheaper compared with a non-subsidised cylinder. “It is 35 percent cheap when compared with commercial LPG cylinder and 36 percent cheaper with respect to diesel,” he said.GGL aims to achieve 20,000 connections by January 2018.