Bhagyanagar Gas disappointed with promoter GAIL

Vol 8, PW 2 (21 Apr 04) People & Policy

Dormant city gas distribution company Bhagyanagar Gas has gathered enough strength to voice disappointment with one of its promoters: GAIL.

In a recent progress report submitted to the oil ministry, BGL complains that lack of manpower deployment from GAIL is affecting its CNG initiative in Andhra Pradesh. Requisite manpower for CNG jobs is yet to be transferred by GAIL which is adversely affecting the progress of BGL operations, reads the note.

Hyderabad-based BGL is a joint venture city gas distribution company between GAIL and Hindustan Petroleum, who hold 22.5% equity each. Andhra Pradesh state authorities hold 5% while the balance 50% will be offered to strategic investors and financial institutions.

BGL claims it is no longer a paper company. Early this year, it started work in Hyderabad, Vijayawada, Tirupati and Vizag.

We plan to introduce both CNG and auto-LPG in these four cities, a source tells PETROWATCH. But lack of professionals and experts from GAIL for CNG is holding up project development.

According to BGL, GAIL has not delivered on a promise to deploy key staff with BGL to implement its CNG projects. By contrast, HPCL, which is promoting the auto-LPG project, is showing more enthusiasm.

HPCLs team has already landed here and they are going ahead with their auto-LPG project, he said. BGL has already acquired land in Tirupati, Pragatools in Hyderabad, Saooranagar and Gachibowli for LPG stations.

But with CNG, BGL is struggling with Andhra Pradesh authorities to acquire land at Vidyadarapuram for a mother station for Vijayawada where it plans to begin CNG operations. GAIL is supposed to lay a gas pipeline from the LANCO terminal to Vidyadarapuram for CNG supplies.

BGL has sent several letters to the Andhra Pradesh Industrial Corporation (APICL) for transfer of 100,000 cm/d of natural gas for CNG distribution, but hasnt heard back. The oil ministry has approved the allocation of 100,000 cm/d and this should be diverted to us, he adds.