GSPC plans Rs1429cr Thane and Dadra CAPEX

Vol 18, PW 17 (23 Apr 15) Midstream & Downstream
     

GSPC group companies Gujarat Gas and GSPC Gas are preparing to venture out of their comfort zone in Gujarat for the first time, triggering whoops of joy among state government officials.

Together the two companies are planning to spend Rs1429cr ($225m) to lay gas pipelines in Thane rural in Maharashtra and the picturesque union territory of Dadra and Nagar Haveli. On April 1, Gujarat Gas received PNGRB authorisation for Thane rural while GSPC Gas received authorisation for Dadra and Nagar Haveli.

They accepted the authorisation in letters dated April 10 but sent to the PNGRB on April 13. When PETROWATCH visited the Gandhinagar office of Gujarat energy minister Saurabh Patel the same day (April 13) it was buzzing with excitement.

Visibly happy, Patel told this report both gas retailers are determined to promote piped gas outside Gujarat. “Our target is to connect 1.76m households across both areas in five years,” said Patel.

Gujarat Gas will spend Rs1207cr ($194m) to connect more than a million households in Thane rural, which covers 8683-sq km on the northern outskirts of Mumbai, and includes areas like Talasari, Dahanu, Palghar, Vikramgadh, Jawhar, Mokhada, Vada, Vasai, Bhiwandi, Shahpur, Kalyan, Murbad and Ambarnath. Once Portuguese ruled, Thane is known for its 35 lakes and botanical gardens.

“Laying gas pipelines is challenging,” we hear. “Thane has a mix of densely populated and forested areas.