Gujarat Gas wonآ’t get NOC for Ahmedabad

Vol 7, PW 18 (19 Nov 03) Midstream & Downstream

British Gas subsidiary Gujarat Gas has failed to win a No Objection Certificate from the state government to set up a gas distribution network in Ahmedabad.

Gujarat Gas has missed the bus, Gujarat Petroleum chairman CK Koshy tells PETROWATCH. It should forget the Ahmedabad circle now.

GSPC is the Gujarat governments chosen agency for the selection of companies that want to set up City Gas Distribution networks. Its an irony that despite being a pioneer in city gas distribution in India, Gujarat Gas did not respond to our advertisement in time, adds Koshy.

Asked by PETROWATCH if this wasnt a violation of the states non-exclusivity clause, Koshy said many had misinterpreted the rule. This is nothing more than a safety clause to protect the consumer, he adds.

Adanis have legally won two circles. If you read the fine print in the clause, it can be interpreted that if a company is unable to deliver or fails to set up the required network within time, the same circle can be awarded to another company.

Koshy said the state government has decided to cooperate fully with companies that have won local gas distribution circles and not offer the same circle to two companies. We have understood that by offering the same circle to two companies there will be a big financial mess because investors wont touch anything that does not promise a good rate of return.

Koshy admitted that companies with competing licences to set up a gas grid in the same city would find it impossible to reach financial closure. On 23rd October, Gujarat Gas applied for a NOC to set up a gas distribution network in Vapi.

According to a state government source, the companys application will be scrutinized within this month. The experts committee is scheduled to meet anytime now and will discuss Vapi.