Urges GoAP to formulate CGD policy
Indian multinational oil and gas company, Indian Oil Corporation Limited (IOCL)’s CGD division has earmarked significant investments for the state of Andhra Pradesh.
The oil marketing major has been ramping up its investments under the city gas distribution (CGD) network in the state.
‘We have a strong commitment to AP and under our CGD division IOCL has an investment outlay of Rs 4300 crores to be deployed over the next 8 years said Mr SK Jha Executive Director, Indian Oil Corporation Ltd speaking to Vizag Industrial Scan on the sidelines of a CII event.
IOCL has won the bids for 12 districts in AP authorized by PNGRB (petroleum and natural gas regulatory board of India).
The twelve districts include Vizag, Vizianagaram, Anakapalli, Srikakulam, Manyam Parvathipuram, ASR, Guntur,Bapatla, Palnadu, Ongole, Nandyala and Kurnool.
‘45% of AP’s districts are to be covered (CGD) with IOCL’ said Mr Jha. Citing India’s aspiration to become the world’s third-largest economy and noting that currently, 87% of our energy is derived from fossil fuels he said India aims to achieve net-zero emissions by 2070, with a corresponding reduction in fossil fuel dependence.
He therefore emphasized on bolstering the city gas distribution networks in Guntur and Visakhapatnam.
For the benefit of transportation LNG is currently being brought in from Ennore to Visakhapatnam and is then converted to natural gas which is in turn transported to end consumers thru pipelines and cascades.
In March 2023 two LNG hubs were commissioned in Vizag with a capex of Rs 30 crores. Similarly, two more LNG hubs are under construction one in Guntur and one in Kurnool at a total capex of Rs 50 crores. As of now there are 26 CNG stations being operated by IOCL in 12 districts and has plans for 40 CNG stations to be commissioned this year.
It is informed that five industries are procuring natural gas for use at Vizag/Anakapalli districts (AMTZ, Parwada & Atchutapuram) while 10 industries are in the process of signing agreements with IOCL to use natural gas for industrial use.
Seeks GoAP’s Support
IOCL has also sought state government support in formulating a state specific CGD policy that considers CGD as a utility service, similar to electricity.
He advocated for extending usage policies in Special Economic Zones (SEZs) to facilitate network expansion across industrial areas.
Some of their other top asks from the state government include allocating government land for building CGD infrastructure and issue of permissions from various state authorities for development of CGD infra.
One of the industry’s biggest asks of reducing VAT from a high of 24.5% to 5% has already been implemented with effect from April 1st 2024.
