North-East and J&K Secure 20 Bids in Initial Stage for City Gas Distribution Network

12th Round of CGD Network Bidding: North-East and J&K Garner 20 Bids in Technical Stage

The 12th round of bidding for the city gas distribution (CGD) network, encompassing the five north-eastern states and the union territory (UT) of Jammu & Kashmir (J&K), has attracted a total of 20 bids in the technical stage. Ladakh (UT), however, did not receive any bids, following the bid submission deadline on January 11.

In October 2023, the Petroleum and Natural Gas Regulatory Board (PNGRB) had called for bids for seven Geographical Areas (GAs) covering Arunachal Pradesh, Meghalaya, Manipur, Nagaland, and Sikkim, as well as J&K and Ladakh.

On January 15, the PNGRB announced the opening of technical bids for all these GAs, revealing that investors displayed enthusiasm by submitting a total of 20 bids from 8 entities against the 6 GAs. Meghalaya led with six bids, followed by Sikkim (four bids), Nagaland (four bids), Manipur (three bids), Arunachal Pradesh (two bids), and J&K (one bid).

While Ladakh did not receive bids, the regulator highlighted the confidence expressed by bidders in the future of natural gas in the north-eastern states and the UT of J&K.

The PNGRB aims to finalize the award by March 2024, envisioning the creation of a robust CGD infrastructure that plays a crucial role in transitioning to a gas-based economy. This initiative is anticipated to bring investments exceeding Rs 35,500 crore and generate employment.

With this bidding round, almost 100% of the country's mainland will be covered for natural gas, serving as a clean cooking, transport, and industrial fuel, according to the regulator. The previous 11 rounds covered 98% of the country's population and 88% of its area for CGD development.

As of August 2023, India boasts 300 GAs under the CGD network, with 1.16 crore piped natural gas (PNG) connections and 6,000 compressed natural gas (CNG) stations.

HBL