Friday 03 September 2010 Government 2.0: The Road Ahead
Rs 455 bn for India gas pipeline network likely

An additional investment of Rs 80,000 crore would be needed by 2015, as gas pipeline network is becoming a priority, according to Assocham report

New Delhi: India expects investments worth Rs 45,500 crore for expansion of its gas pipeline network over the next four years, said an industry lobby report released here on Tuesday.

The report, prepared jointly by the Associated Chambers of Commerce and Industry of India (Assocham) and accounting firm Ernst and Young (E&Y) said the amount will be invested in building the pipeline networks, reports IANS.

Though coal would remain the major energy source for India, the share of oil and gas in the primary commercial energy mix is expected to grow from the existing 36 per cent to 41 per cent in a decade, it said.

According to the report, an additional investment of Rs 80,000 crore would be needed by 2015, as gas pipeline network is becoming a priority in the Indian petroleum sector.

Currently, India has a 10,000-km long gas pipeline network, in which the state-run Gas Authority of India (Gail) has 55 per cent stake.

Assocham President Sajjan Jindal has said a significant expansion of gas pipeline network is expected over the next few years as India gears up to create a cross-country integrated pipeline network for promoting gas utilisation.

Gail is already implementing a national grid project under which it plans to develop about 8,000 km of pipeline networks across 15 Indian states.

Private sector major Reliance Industries (RIL) is also implementing its own pipeline network project, which includes the development of a 1,440-km Kakinada-Ahmedabad East-West Pipeline and a Southern India pipeline network.

Regional pipeline network exists in Gujarat, Andhra Pradesh, Assam and Tripura. Gujarat State Petronet is developing a 1,200-km Gujarat gas grid, while Andhra Pradesh is also enhancing its gas distribution network.

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