Guj govt defies Centre, to invite bids for gas distribution

it is one step forward and two backwards. after agreeing to go slow on its plans to set up a gas transmission and distribution network, the gujarat government is once again rearing to flout the centre's directive on the issue. according to sources, the gujarat government has taken an in-principle decision to call bids for the gas distribution circles in the state. this is contrary to the informal directive by the centre asking the state not to proceed with its plans for gas distribution unless centre comes out with a new act for regulation of the gas business in the country. we are going to put the adani group's bid for gas distribution circle in baroda-mehsana sector for a challenge bid under the gujarat infrastructure development act, a top official source told et. the adani group is learnt to have a plan to create a gas pipeline network at the cost of rs 431.48 crore, over a period of six years. the expected move by the state has been initiated under the pretext that the state government cannot afford to hold back on development projects, especially during the times of recession. gujarat is to be the home for three lng terminals and large number of gas transmission projects worth rs 8,000 crore. the work on the lng projects of petronet lng and shell india is already under way and are expected to go on-stream by 2004. even british gas has set a deadline of 2005 for completion of its 5.4 mmtpa lng terminal at pipavav. this apart, gujarat state petronet has also begun work on its 1507-km gas grid project. according to sources, the proposed central act could take anywhere between six months to two years, which is too long . they feel that unless the complete gas transmission and distribution network is in place by 2004, it would be difficult for the lng operators to market their gas. the proposed move by the state could trigger off a fresh controversy and bring the warring sides back to the battlefield. the problem between the centre and the state started when the gujarat government formulated the gujarat gas (regulation of transmission, su-pply and distribu-tion) act, 2001. the centre questioned the authority of the state, claiming that it was an unwarranted foray into the exclusive domain of a union subject. it even sent the gujarat gas act for presidential reference to verify the jurisdiction of states to promulgate law for gas transmission and transportation. a cabinet note, meanwhile also sought the intervention of prime minister a b vajpayee because there was a need to settle the matter once and for all. the centre feels that if this issue is not settled, other states would also follow gujarat and legislate their own law, leading to further complications and restrict free flow of gas between various states.

Guj govt defies Centre, to invite bids for gas distribution

IT IS one step forward and two backwards. After agreeing to go slow on its plans to set up a gas transmission and distribution network, the Gujarat government is once again rearing to flout the Centre’s directive on the issue.

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