22/10/2008


National Gas Grid: If Bihar is Destined to be the Last State on the Map?

Prateek K Anand *

 

 

As the plan for national gas grid stands today, Bihar and Jharkhand are likely to be overlooked rendering them handicapped in this crucial infrastructure. This will cost these states yet another crucial competitive advantage compared to other states. This goes only to show the lack of vision on part of our federal planners. Invariably, their policies and plans are meticulously designed to keep less demanding states like Bihar perennially backward. Such act on their part puts these underdeveloped states of the country at even more economic disadvantage and developmental deficit. Compounding this even further is the total apathy of state administration in these matters. Plan and policies governing national gas grid has been no exception.

As the things stands today, there are two major players in gas infrastructure development. Leading the two is a CPSU Gas Authority of India Limited while doing the catch up act is Reliance Industry. There is a also a third fringe player in form of GSPCL, which is a government of Gujarat undertaking and has as such focus mostly on intrastate gas grid in Gujarat. Only exception is the linking up of Kakinada Gas find to Gujarat through a Multi state pipeline which is essentially to bring gas from its field there to Gujarat.

Gail is right on track to cover the western flank of India from Kerala to Punjab as part of its national gas grid and has already done so with regard to the state of Maharashtra, Gujarat, Rajasthan, Madhya Pradesh and UP. It is expeditiously proceeding with its work on linking up to Delhi, Haryana and Punjab as well. As such Gail has planned to link up Kerala through western part of TN and Bangalore as part of work extension from its Dabhol end. It also has plans for West Bengal through Bihar and Jharkhand by linking up Haldia with Jagdishpur. However, much before that West Bengal is also likely to get extension link of Reliance pipeline connecting Haldia to Kakinada. In all this plan , it seems, Bihar and Jharkhand would be only the last cog. That too has been possible only because they lie on national cross road and skipping them will not only make it too obvious but will also result in many fold cost escalation. Even then this plan, at best, can take shape only by 2012 which would be the fag end of National Gas Grid plan. Reliance will have already covered the eastern and southern region adequately. Though there was also a plan for linking Gaya through Barauni through North East India to Myanmar. This too was under compulsion. However, now it seems to have been shelved as well as India lost out on China in the Bid for Myanmar Gas. Most of the infrastructure plans seems to be covering Bihar by default and not as part of any design of economic development of the state. Gas grid is also no exception.

True Bihar would eventually get the Gas Grid. However, this will happen only after most gas based industry, primarily, fertilizer plants and power plant among others would have already set up their facilities. Even domestic gas supply would have been covered through piped connection by then. This will eventually mean that almost all of the available gas resources are tied up by the industry setting up in other states, and also for domestic consumption there, leaving nothing to spare for Bihar excepting being a conduit for last leg of pipeline. Then there would be another risk even if some untied gas resource is available in the form of surplus capacity creation in all the dependent industry leaving no more scope for setting up of such industry in Bihar. At the least it would have robbed Bihar of all the competitive advantage available to states which are first off the block.

As of now, there seems to be some hope for Bihar if fertilizer ministry pushes for expeditious completion of Jagadishpur- Gaya- Haldia (JGH) pipeline with a spur link to Barauni. Efforts of Bihar government or for that matter its infrastructure development authority under chairmanship of chief secretary is some how 'still wanting' in this regard. State governments apathy in questionable in this matter even when it is likely to be spared lot of land related trouble as these pipeline can be located along its numerous rivers.

As things stands today following are the gas pipelines planned across India:

GAIL
85 Kms Kelaras-Malanpur
192 Kms Vijaipur-Kota
180 Kms Jagoti-Pitampur
474 Kms Dahej Uran (Dupl)
327 Kms Dabhol Panvel (Dppl)
139 Kms Thulendi-Phoolpur
1115 Kms Dahej-Vijaipur–Dadri
640 Kms. Dadri-Bawana-Nangal
450 Kms Chainsa-Jhajjhar-Hissar
750 Kms. Dabhol-Bangalore
840 Kms Kochi-Mangalore-Bangalore
890 Kms Jagdishpur-Haldia
1400 Kms Myanmar-Mizorma-Assam-Gaya ( Now Shelved For Want Of Myanmar Gas)

Reliance Gas Grid

1,385-Km Kakinada –Hyderabad-Pune-Bharuch,
820-Km Jamnagar- Bhopal
651-Km Hyderabad-Goa
600-Km Kakinada-Chennai
600-Km Chennai-Tuticorin,
1100-Km Kakinada-Basadbpur-Bardhaman ( West Bengal)
652-Km Chennai-Bangalore-Mangalore/ Mysore
1100-Km Bhopal Cuttack
350-Km Shadol-Phulpur CBM Pipeline,
800-Km Hyderabad-Nagpur- Bhopal
650-Km Hyderabad-Hassan

GSPCL
1851 Kakinada-Ahmedabad

Given all this background, Bihar government should exert pressure on GAIL to expedite the JGH pipeline with a spur to Barauni. Delay may also put spoke in revival of Barauni fertilizer units. Moreover, Planned Bihta Gas based thermal power plant may not take off at all. Additionally, it should push for extension of Barauni spur along Ganga up to Pirpainti. Better if this spur covers entire length of Ganga in Bihar. Also state government in coordination with Jharkhand, Orissa and Government of Nepal should push for a North South gas grid giving boost to prospect of a strategic infrastructure corridor through these states. Ganga spur can also be used to further link up with north east. There is an immediate urgency to push for city gas distribution plan as well. State can ill afford to lag behind in this matter.

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*A Financial Sector Professional with over 11 years of experience in various streams like Investment Banking, Financial Services and Debt Market Operations.

Comment

 

Comments...

Being a city gas distribution professional and native of Bihar, I appreciate Mr. Prateek K Anand's visionary and constructive article on natural gas infrastructure, in context of Bihar / North India.

It shows the apathy of state of mind of our Political boss, their lack of vision and willpower. We as people of Bihar state have nominated and send so many cabinet minister or state minister at centre most of the time, but somehow things were never persuaded properly with good intention. Reason is simple, we lack leaders who may have global view for upliftment of the society - in terms of being innovative in bringing new projects & creating new job avenue for their existing and next generation.

Our mother land has produced such huge volume of talent / genious in this field that today our country's petroleum and natural gas resources and infrastructures are controlled and governed by Bihari only. Either it is CMD GAIL or Secretary, Ministry of Petroleum and Natural Gas (MoPNG) - two most critical positions of industry. This is the right time to persue the case of Bihar, power corridor support us. Our CM means business and have achieved comparatively better respect from all corners of society and also has enhanced law & order state of Bihar. Things can be materialised. But whole-brain management approach needs to be taken.

Today Gujarat, Karnataka, NCR cities, Maharashtra, Haryana, West Bengal etc. are fare ahead then us. We have to start from scratch. In current context and available technology - Gujarat State Model may do wonder for the state. One aspect is creating major intro-city pipeline infrastructure for transportation of natural from Barauni or whatever the point of delivery within state may be to various potential demand pockets. It should be carried out by state government machinery as massive investment would be required and I don't think in today's economical condition any private party would be interested in transmission line. Other aspects of business is creating distribution infrastructure within various cities, it means retail players. This role should be played by Private parties. In this process Petroleum and Natural Gas Regulatory Board will be constitutional authority, recently nominated by Parliament.

Natural Gas has very vital characteristic dominance on other competitive fuels i.e. Furnace Oil, LDO, LSHS, HSD, Kerosene, LPG, Naptha etc.

Reduce the emission of Carbon-dioxide (CO2) from Vehicle, improve air quality. Eco-friendly fuel.
Economical w.r.t. other fuels and minimum price variation w.r.t. crude oil. It has no relation with crude price. It is more dependent on demand-supply and climatic change across globe.
For household, it is safe, economical and 24x7hrs supply. No headache of LPG bottle. Approximately 20% less expensive.
Adulteration not possible. Hence theft cost saved.
Very useful, effective and efficient fuel for city gas distribution, power generation through small genset, captive power generation, major power plant, fertiliser plants, glass, cermanic, pharmaceutical and textile industries etc.
Huge potential of employment generation. Enough Management and technical leaders available in Bihar. Each city would be needing approx. 75-150 employees from owner side of company only. Others would be contract labourer, consultancy, businessmen etc.

By 2012, it is well established and recently published by GAIL that gas would be available in abundance in our country. Hence it's our request to all Leaders, bureacrats, intellectual, technocrats and common people of Bihar, please give a thought for making Bihar state - natural gas based economy. Reason - Natural gas is 21st century fuels and it is green fuel. It will be cost effective and healthy green fuel for our next generation. Let us not deprieve them due to our lathargic approach towards system.

Let us work to improve the system, because only criticism is not enough. If require, why don't we should meet our CM to give a thought over it.

Note: All opinion mentioned here is personal. No relation with our company business.

Rakesh Singh
Sr. Manager (Projects),
Adani Energy Ltd.,
Lucknow - 226024.

raku_72@hotmail.com

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This is a most timely itme raised by the author. 

Let us raise our voice against this most discriminatory action. As it is, we are far behind in so many infrastructure projects. Such discrimination in a new project should just not be tolerated.

It will be good if we can find a way to reach out to our public representatives like MPs, MLAs and ministers and ask them to raise their voice strongly against it.

--
Thakur Vikas Sinha

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You are absolutely right. Where are these great politicians when an important infrastructure project like this is ignored for Bihar and Jharkhand. I think the politicians from south indian states know that Bihar politicians are fool and they will not raise their voice because they do not understand what is important for the state. This is the reason these states are being targetted and ignored.

 
I feel ashamed of by reading this type of news. At one stage all the statistics shows that Bihar is the least developed state in the country. But the infrastructure projects by the central govt. is not being implemented in Bihar. This is deliberately done by the congress because they know there is no congress base left in the state. South Indian state want this because they will be called as developed and Bihar will remain undeveloped. South Indian states know very well that once the infrastructure is developed in Bihar, nobody can stop that state to develop and it may become the most developed state in the country. That is the reason mjority of the UPA partners do not bring good infrastructure project in Bihar and Jharkhand. If you look at the NHAI projects, Airport Development or any other infrastructure development Bihar gets the least priority for these projects, WHY ?
 
It is deliberately, knowingly and to keep Bihar and Jharkhand always BACKWARD so that the hard working people of these states can be abused, manipulated easily. I request all Bihar & Jharkhand politician irrespective of their parties to come forward and raise this issue for the development of Bihar and Jharkhand and its people.
 
Sanjay Sinha

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Thank you for raising such a important issue.
I really fail to understand where are Bihar politicians like Mr. Laloo Prasad Yadav, Mr. Ram Vilas Paswan & Mr. Nitish Kumar and what they are doing?, why not they are raising such a real issue that too related to Bihar & Jharkhand development and major energy infrastructure. it seems like that they all are sleeping only raising idiotic issue like Mumbai (Maharastra Nav Nirman Sena etc....), it is not the case of gas pipe line only, same thingh happen with NHAI projects in Bihar & Jharkhand it again in the last stage why??? are they sleeping at parliament? or they hate Bihar, Jharkhand development?, or are they not aware what is happening in other part of India?

request you to pass my questions to these politicians.


Piyush Kr Nimiyar
New Delhi

piyush1919@gmail.com