Indian Express 27.08.2009
Baroda Dairy to get natural gas supply through pipeline
In what will save the environment as well as nearly Rs 50 lakh in annual operational cost for the Baroda Dairy, the Vadodara Municipal Corporation (VMC) will supply natural gas to the milk cooperative through a pipeline.
The VMC will supply the gas at Rs 15.90 per cubic meter, excluding the value added tax. This will allow the dairy to switchover from its daily oil-based furnace operations to natural gas.
Currently, the dairy uses oil-based boilers for the production of its various milk products. All major daily processes are carried out from these boilers only. The cost of furnace oil is about Rs 23 per litre.
The dairy uses around 3,000 to 35,000 litres of furnace oil daily, spending around Rs 91,000.
Sailesh Nayak, in-charge project engineer (Gas), VMC, said, “The decision to supply gas at Rs 15.90 per cubic meter was taken at a meeting held two days ago.”
The idea of having gas-based operations, a brainchild of dairy MD Ravindra Mathur, had hit a roadblock after the VMC did not allow the Adani Group to provide gas. It had allowed setting up of only gas stations and not laying pipeline.
“Adani was not allowed to sell the gas commercially, and therefore, the process was not completed,” said Mathur, adding, “the supply would start soon”.
The shift is expected to save around Rs 15,000 per day, effecting an overall saving of Rs 4 lakh per month. Mathur added, “Gas-based operations are cheaper than furnace oil, and gas is environment-friendly, too.”
Earlier, Adani Energy Ltd as well as GAIL India had approached the VMC seeking permission to supply gas commercially in the city, which was rejected by the VMC.
