All roads lead to Gujarat for cheap gas supply

Vol 21, PW 2 (19 Oct 17) Midstream & Downstream

Narendra Modi's Make In India campaign is hot air, say some critics.

But Gujarat State Petronet (GSPL) thinks otherwise and can prove it. A GSPL source tells this report global companies are pouring into Gujarat thanks to the policy, unveiled on September 25, 2014.

More, their arrival is boosting gas sales. "Last fiscal (2016-17) we connected 16 new factories to the Gujarat gas grid," he says.

Located at Sanand in western Gujarat, Dahej in southern Gujarat, and Panchmahals in eastern Gujarat, these factories are together taking an impressive 175,000 cm/d of piped gas. Among the new customers is French car producer Valeo which set up a Rs100cr ($15m) factory at Sanand in 2015 to produce temperature control products for Ford cars and which has been taking gas since 2016.

Valeo has bought a 60,400-sq metre plot of land and plans to expand into producing radiators, fan systems, condensers and air controllers. "Gas intake at Valeo will increase as it increases capacity," we hear.

Similarly, Indonesia's leading biscuit, noodles, chocolates and candy manufacturer Inbisco began taking piped gas towards the end of 2016 at its 85,000-sq metre Sanand facility. And Germany's iconic Nivea Cream, which set up a Rs850cr ($128m) factory at Sanand on a 72,000-sq metre plot of land in May 2015, is also taking gas.

"This is Nivea's first Indian factory," says GSPL.