Adani Energy lobbies new UP government for Noida

Vol 11, PW 7 (09 Aug 07) Midstream & Downstream

Adani Energy has begun lobbying Uttar Pradesh state authorities for permission to resume work on its City Gas Distribution network in the fast-growing Delhi suburb of Noida.

PETROWATCH reported in its June 28th issue that UP state authorities had asked Adani to stop work during an early June review meeting because of dissatisfaction with the company’s progress. State authorities are particularly concerned over the Adanis inability to secure gas.

But on July 30th Adani executives met New Okhla Industrial Development Authority (NOIDA) officials with a request to resume work. “We received a very good response,â€‌ Adani tells us.

“Now we plan to meet officials at UPSIDC (Uttar Pradesh State Industrial Development Corporation) to ask them to reconsider their decision also.â€‌ Adani believes all this manoeuvring is a direct result of the state elections in May, which saw defeat for Samajwadi Party chief Mulayam Singh Yadav.

It was Yadav’s government that awarded the original No Objection Certificate (NOC) to Adani for Noida on November 16th, 2005. In Yadav’s place as chief minister comes (Ms) Mayawati Kumari, head of the Bahujan Samaj Party.

Adani exudes confidence about its July 30th meeting and is expecting a letter from state authorities any day allowing it to resume work. Elsewhere in Uttar Pradesh Adani is preparing its strategy for Lucknow, where rival Green Gas, promoted by Indian Oil and GAIL, has been allowed to resume work (see below).

Lucknow will be a test case for the new downstream gas regulator, Labanyendu Mansingh. “He will have to find a solution to this problem,â€‌ says a source.

“Huge investments have been already made by Green Gas and Adani Energy in Lucknow. One possible solution is to divide the area in Lucknow between Green Gas and Adani Energy.

â€‌ Mulayam Singh Yadav’s government awarded Adani Energy a NOC for Lucknow on February 10th, 2006 and for the city of Khurja on 17th November 2005.

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