Fueling Growth: PNGRB Receives 20 Bids for CGD Network in Northeast and J&K

The Petroleum and Natural Gas Regulatory Board (PNGRB) has successfully received a total of 20 bids during the technical stage of the 12th round of bidding for the city gas distribution (CGD) network. This round encompasses the five north-eastern states and the union territory (UT) of Jammu & Kashmir, with Ladakh (UT) being the only region without any bids.

The deadline for bid submission was January 11, 2024. PNGRB had called for bids in October 2023, inviting proposals for seven geographical areas (GAs) that include Arunachal Pradesh, Meghalaya, Manipur, Nagaland, and Sikkim, as well as J&K and Ladakh. The technical bids for all these GAs were opened on January 15.

Out of the total bids received, eight entities submitted proposals for six GAs. The distribution of bids is as follows: Meghalaya received around six bids, Sikkim received four, Nagaland received four, Manipur received three, Arunachal Pradesh received two, and J&K received one. PNGRB aims to finalize the awarding process by March 2024.

This initiative is poised to establish a robust CGD infrastructure, playing a pivotal role in transitioning to a gas-based economy. The anticipated investment of over Rs 35,500 crore and the consequent job creation highlight the economic impact of this venture. The current bidding round, once concluded, will extend natural gas coverage to nearly 100 percent of the country's mainland, serving as a clean cooking, transport, and industrial fuel source.

The preceding 11 bidding rounds already covered 98 percent of the country's population and 88 percent of its area for CGD development. Presently, there are 300 GAs under the CGD network in the country. As of August 2023, India boasted 1.16 crore piped natural gas (PNG) connections and 6,000 compressed natural gas (CNG) stations.

 News by Rahul Yelligetti