Indian Express 25.09.2009
VMC, GAIL to join hands soon
The Vadodara Municipal Corporation (VMC) has started preparing a project for the distribution network to supply piped natural gas in the city following a nod from the state government to form a Joint Venture Company between the Corporation and Gas Authority of India Limited (GAIL).
In 1972, VMC had become the first local body in the country to supply piped gas to people. It is still the only local body to do so, that too on no profit no loss basis.
Senior officials at VMC's Gas Project department told Newsline that the Corporation has a broader plan of pipeline network. Once the JV is formed, the plan will be tabled for discussion with GAIL to make changes. Officials said the records of area-wise consumption, demand from other areas, bill collection patterns and incidents of thefts will be used to make future plans.
“We have already prepared a Detailed Project Report, which we were supposed to submit to the higher authorities when we proposed for the JV. The report will come in handy once we move ahead with the formation of the company. It will, however, not be the only document to decide the future plan of action, because we will also have inputs from GAIL for the distribution network," said Municipal Commissioner Manoj Kumar Das.
The priority, according to Das, will be domestic users. “Being a civic body, the priority for VMC will always remain the domestic users. But even the commercial users will enjoy all the benefits," he said.
At present, Vadodara is getting 1 lakh cubic metre gas supplied to 74,000 customers in different parts of the city. But with the latest development, the supply will be increased to 4 lakh cubic metres, delivered to 4 lakh customers. “The gas we get from GAIL will be of higher rates than what we have been getting so far. At present, customers pay Rs 7.90 per unit. There will be different formulas for parity between the old and new prices.
One option will be to pass on the price hike in a phased manner and the time limit could be five years, so that it does not pinch the customers," said an official at the Gas Project department.
The piped gas supply distribution network in Vadodara, considered to be the first in Asia, was also eyed by private players like Adanis, but the VMC insisted on running the show on its own.
