Rajasthan wants 5% in new CGD plans for Kota

Vol 9, PW 26 (20 Apr 06) News in Brief

State authorities in Rajasthan have indicated they want to take a 5% stake in a planned City Gas Distribution (CGD) network planned by GAIL and Bharat Petroleum for Kota.

Rajasthan authorities are believed to have written to GAIL promising full support for the CGD network and on 12th April held a meeting with GAIL officials in Jaipur to understand the schedules and timelines for the project. GAIL has already begun acquiring land outside Kota for a city gate station, where gas enters the city limits for internal distribution to customers.

Last month Rajasthan authorities awarded No Objection Certificates (NOCs) to Adani Energy for Jaipur and Udaipur despite opposition from GAIL. Before awarding the NOCs, Rajasthan invited Expressions of Interest (EOI) from interested companies.

GAIL did not respond, saying it was already implementing a CGD network in the state and did not need a NOC.