CGD: Jay Madhok wins PNGRB licence for Kutch
Jay Madhok has dismissed industry critics who say it can't meet the stiff targets it quoted to win a gas retail license for Kutch (East) in Gujarat.
“None of these other companies who say our bid is unrealistic can meet their own targets,” quips a Jay source. “Who are they to say anything? Everybody quotes high targets.
The truth is that old players don’t want new companies to win.” If Jay fails to achieve its targets, he adds, it will be penalised by forfeiting a Rs20m ($320,000) performance bond, demanded by the PNGRB as, “a guarantee for timely commissioning.
” On March 12 the PNGRB sent a 'Schedule D' notice to Jay director Satinder Madhok clearly stating that, “laying, building, operating or expanding” the CGD network in the 6278-sq km Kutch (E) area must begin within 180 days or by September 8, 2015. Price bids from Jay and GSPC Gas were opened on February 16, five years after CGD-III was launched in July 2010.
When technical bids were opened on February 18, 2011, eight companies participated but six lost interest because of the four-year delay. Jay has committed to connecting 35,500 homes with piped gas every year in years one, two, three and four of its five-year exclusive marketing license and 13,350-inch km of steel pipelines in years one, two, three and 4450-inch km of pipeline in year four.