City gas pipelines policy to take-off by Jan 2007

New Delhi, Dec 20: The government today said the project for development of natural gas pipelines making fuel available to households across the country would take off by January next year and envisaged that the gas production in the country would double in three years.

The policy to promote investment from public and private sector for natural gas pipelines would be readied in another month that would ''regulate an orderly growth and development, which would lead to the betterment of the lives of our people,'' Petroleum and Natural Gas Minister Murli Deora said here.

The policy has been evolved after wide consultation with the various stakeholders As of now, the country has a very limited gas pipeline infrastructure and the policy envisages that in conjunction with the Petroleum and Natural Gas Regulatory Board Act (PNGRB), 2006, would facilitate creation of necessary infrastructure, which would be available to all players through open access on a non-discriminatory basis.

Before being enacted as law, the policy would be subjected continously to a review and the Regulator may suo motu suggest amendments, Petroleum Secretary M S Srinivasan told reporters.

The provision for keeping extra-capacity in the gas pipelines would ensure availability of capacity for use on common carrier basis by any third party, thereby encouraging competition.

The policy that provides a board framework for the development of natural gas pipelines and city/local natural gas distribution networks, the detailed contours for the same would be laid down in the regulations that are being framed.

The response received to this policy would also form an important input in the formulation of the regulations, Mr Srinivasan said.

The main thrust of the policy is to secure consumer interest, both in terms of gas availability and resonable tariff.

UNI