Government to Fund City Gas Distribution Pipeline for Balanced Development
India: The Government will fund a USD2
billion city gas distribution pipeline project partially to link the five east
Indian states in order to promote development in these regions. The 2500 km
pipeline will be built by GAIL India Limited and the government has planned to
contribute 40 percent of the total cost of the project, said Oil Minister
Dharmendra Pradhan. The first of its kind move, in which the government is
funding any such project is a part of Prime Minister’s plan for balanced
development throughout the nation according to Oil Minister. The pipeline would
run through the Uttar Pradesh, Bihar, Jharkhand, West Bengal and Odisha, which
together account for nearly 40 percent of India’s population.
TechSci Research
depicts that Natural Gas is converted to Compressed Natural Gas (CNG) and Piped
Natural Gas (PNG), is distributed to the end users through City Gas
Distribution (CGD) network. Owing to availability of huge reserves of natural
gas in India, its environmental friendliness and easy transportability, city
gas distribution is forecast to witness robust growth in the country over the
next decade. In India, major areas where CGD network is almost established include
Delhi, Mumbai, and Gujarat. City Gas Distribution is expected to play a crucial
role in the growth of all sectors such as transportation, domestic, commercial
and industrial in the coming years"
According to the recently published report by
TechSci Research, “India
City Gas Distribution Market Forecast and Opportunities, 2030”, the City Gas Distribution (CGD) market
in India grew at a CAGR of 6.25% during 2013 - 2015. During 2016-2030, the
country’s CGD network is anticipated to witness robust expansion on account of
increasing number of vehicles coupled with rising urbanization in the country. With an increasing number of favorable
initiatives taken by the Government of India in CGD sector, various companies
are foraying into CGD business in different geographies across the country.