SHRI RAM NAIK RELEASES DRAFT NATURAL
GAS PIPELINE POLICY
7000
KM NATIONAL GAS GRID PROPOSED AT RS. 18,000 CRORE INVESTMENT
In
a major initiative, Shri Ram Naik, Minister of Petroleum &
Natural Gas released the draft Natural Gas Pipeline Policy for
the development of natural gas sector and optimum utilisation
of the gas available from various sources in the country. In accordance
with the draft Policy, transportation of all gas is envisaged
to be done through a network of pipelines laid with the authorisation
granted by the Regulator through a transparent mechanism. Shri
Ram Naik informed that the draft Policy has been placed on the
Website of Ministry (www.petroleum.nic.in)
for soliciting suggestions from various stake holders, interested
organizations and public latest by 31st October 2003.
Addressing a Press
Conference here today, Shri Ram Naik informed that according to
draft Policy, all trunk pipelines covering more than one State
or operating at a pressure more than the notified level will be
built/managed by a company to be notified by the Government, and
till it is notified by GAIL. It is proposed to set up a National
Gas Grid consisting of 7,000 Km long pipeline network at a cost
of around Rs. 18,000 crore over the next 5-6 years. Further, any
producer of gas, subject to prior permission of the Regulator
(and Central Government for the PSUs) will have the right to sell
gas within 100 Kms. of well-head or land-fall point to consumers
directly and lay the pipeline for this purpose.
Shri Naik announced
that the Policy envisages appointment of a Regulator under the
Petroleum Regulatory Board Bill 2002 for regulating transmission,
distribution, supply and storage system for natural gas/LNG and
to promote development of the sector. The Regulator will ensure
access to the gas pipelines on non-discriminatory common carrier
principle for all users. He will also approve pipeline tariff
for the common carrier pipelines. Till the Regulatory Board is
set up, the Government will perform functions of the Regulator.
It is also proposed
to set up a "National Advisory Council" to promote and develop
the gas sector which will consist of stakeholders of gas grid
system including State governments. The Council will give advice
on the matters to the Government, and if desired, to the Regulator.
Shri Ram Naik emphasized
that the draft Pipeline Policy has features which would promote
investment in gas pipelines and will provide a policy framework
for the systematic development of gas sector. He said there is
a need to provide a proper linkage between gas sources and its
market centres along with inter-connectivity between regions,
consumers and producers. With the recent major discoveries of
gas in the K.G. Basin on the Eastern Coast and other discoveries
on the Western Coast and in Rajasthan, it is expected that the
domestic production of natural gas will increase substantially.
LNG imports will also become a reality when India’s first LNG
terminal being set up by Petronet LNG Limited at Dahej starts
its operations from January 2004.
With all these efforts,
the natural gas is on the threshold of playing a much bigger role
in the energy sector of India. This policy framework will greatly
benefit the core sectors of the Indian economy namely, power,
fertilizer and steel. The draft Policy is also expected to give
an impetus to the development of CNG projects for supply of gas
to the vehicles in different cities on the lines of CNG Projects
in Delhi and Mumbai and lead to significant reduction in vehicular
pollution bringing environmental benefits. The growth of these
sectors will galvanize the economy of the nation as a whole.
