Bidding for CDG network to begin in October

New Delhi: The bidding process for city gas distribution (CGD) network will begin in October, said Mr Labyendu Mansingh, Chairman of the Petroleum & Natural Gas Regulatory Board (P&NGRB), while addressing the conclave on CGD, organised as part of the seventh ORF-IEF Petro India.

He said that the technical specifications are ready and the Board will release it shortly. Mr Mansingh hoped that the Board would be able to issue authorisation to prospective city gas distributors by March-end next year. He assured that the bidding process will begin in a month’s time.

Mr Mansingh said the Board plans to take up bidding first for cities where infrastructure, such as like pipelines, already exists or are near completion; bidding for nearly 19 cities would be taken up first. He clarified that adequate measures were being taken to ensure the gas producers do not favour their own transportation and distribution entities and discriminate against other players.

On the issue of extending tax holidays for investors in the sector, Mr Mansingh said though he is in its favour, the Board has no jurisdiction over this and he would have to take up the issue with the other ministries.

On the sidelines of the conclave, P&NGRB member Mr B.S. Negi revealed that the bidding will begin by October 9.