As many as 5,905 households will get piped natural gas supply in the next 5 years in the district, according to an authorisation letter issued to a Gujarat- based company, IRM Energy Pvt Ltd, by the Petroleum and Natural Gas Regulatory Board (PNGRB) for establishing a city gas distribution (CGD) network in the district.
The Petroleum and Natural Gas Regulatory Board had asked for bids for laying, building, operating and expanding the city gas distribution system in December last year.
Four companies, including IRM Energy, GAIL Gas Limited, IOCL-Adani and MRPL had applied.
Ultimately, the IRM Energy Pvt Ltd bagged the project.
The IRM has got the project for the next 25 years and work is likely to commence by January 2017 for setting up a CGD network in 1,146 square km area of the district with a population of 6 lakh (census 2011).
A total of 650-km-long pipe network will be laid in four charge areas (CAs) divided by PNGRB including Amloh, Fatehgarh Sahib, Bassi Pathana and Khamano. No connections will be given in first year of work.
The PNGRB has asked the IRM to submit a detailed financial closure report by January and the contractor will furnish a 38.06-crore bond to ensure timely completion of the project.
Post that, the company will publish and display the retail selling price for all categories of customers.
Domestic customers on priority
According to the PNGRB’s authorisation letter, the operator would maintain an uninterrupted supply of gas to all categories of customers in the CGD network, but domestic customers would be given priority.
In the event of any disruption in the supply of the gas, priority shall be accorded to the restoration of supply to domestic customers. In the case of disruption of supply to domestic PNG customers for more than 12 hours, the entity would be liable to compensate the customers.
Cleaner Fuel for Industry
Mandi Gobindgarh, a steel industry hub, falls in the first charge area (CA), Amloh, of the project.
Once operational, it would prove a boon for the industry along with residents as piped natural gas would be available for all categories of customers.
Though, rates have not been published so far, but if they would suit the industry’s budget.
The IRM Energy Pvt Ltd has a target of laying 650-km long pipeloine network over 1,146 square km area of four charge zones in the district to give 5,905 domestic connections in the first five years.
The annual breakup is as follows: