Madhya Pradesh emulates Gujarat model

Vol 16, PW 12 (10 Jan 13) Midstream & Downstream

Madhya Pradesh chief minister Shivraj Singh Chouhan isn’t content with belonging to the same BJP political party as Gujarat chief minister Narendra Modi.

He wants to take a leaf out of Modi’s book and emulate the successful development of Gujarat’s gas grid. Chouhan has his hopes riding on GSPC subsidiary Gujarat State Petronet’s (GSPL’s) proposed 1746-km pipeline from Mallavaram in Andhra Pradesh to Bhilwara in Rajasthan, also passing through Bhopal and Vijaipur in Madhya Pradesh.

Half this pipeline’s total length, or 867-km, passes through Madhya Pradesh. “It’s a ‘win-win’ for everybody,” says a GSPC source.

He explains the GSPL-led pipeline-laying consortium will need RoU permission for a staggering 1732 hectares of Madhya Pradesh land. But that should be no problem as chief minister Chouhan is giving his full support.

GSPL and partners plan to commission the pipeline by mid-2015. They aim to invest Rs2200cr ($406m) on the Madhya Pradesh section alone.

Once commissioned, the pipeline will carry 52.86m cm/d. GSPC managing director Tapan Ray signed a MoU with Chouhan last year at the Global Investors Summit held at Indore from October 28 to 30.

A state official adds the proposed pipeline will be a shot in the arm for some of the most backward areas of central India. “Gas availability is likely to bring in a lot of development,” he says.

GSPL (52%) shares the Mallavaram to Bhilwara project with fellow state-owned companies IndianOil (26%), Bharat Petroleum (11%) and Hindustan Petroleum (11%). They will operate the pipeline through joint venture company GSPL India Transco.