Lok Sabha Question No. 2025 (UNSTARRED), answered on 2016-11-28
Subject: GSPL Consortium for Gas Pipeline
Ministry: PETROLEUM AND NATURAL GAS
Asked by: RAJESHBHAI NARANBHAI CHUDASAMA

## LOK SABHA

## UNSTARRED QUESTION NO. 2025 TO BE ANSWERED ON 28.11.2016 GSPL CONSORTIUM FOR GAS PIPELINE

## 2025.   SHRI RAJESHBHAI CHUDASAMA:

Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

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- (a) whether Gujarat State Petronet Limited (GSPL) led consortium with Indian Oil Corporation  Limited,  Bharat  Petroleum  Corporation  Limited  and  Hindustan  Petroleum Corporation Limited to develop Mehsana-Bhatinda-Jammu-Srinagar pipeline and Mallavaram-Bhopal-Bhilwara-Vijaipur pipeline projects;
- (b) if so, the details thereof and the present status of the said project along with the mode of investment;
- (c) whether the Government of Gujarat has requested for providing capital grants/viability gap funding for GSPL India Gasnet Limited and GSPL India Transco Limited along with grant of license for development of City Gas Distribution networks on nomination basis on the lines of support provided to GAIL Jagdishpur-Haldia project; and
- (d) if so, the details thereof along with the action taken by the Government on such request?

## ANSWER

पेट्रोलियम और प्राक ृ लिक गैस मंत्रािय में राज् य मंत्ररी (स् विंत्र प्राार

( श्ररी धमेन्द र प्रधान

## MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF PETROLEUM & NATURAL GAS (SHRI DHARMENDRA PRADHAN)

(a)  &  (b):      Petroleum  &  Natural  Gas  Regulatory  Board  (PNGRB)  under  the  provisions  of PNGRB Act,2006 has authorized Gujarat State Petronet Limited (GSPL) (52% equity share)  led consortium with other partners as Indian Oil Corporation Limited (IOCL) (26% equity share), Bharat  Petroleum  Corporation  Limited  (BPCL)  (11%  equity  share)  and  Hindustan  Petroleum Corporation  Limited  (HPCL)  (11%  equity  share)    to  develop  Mehsana-Bhatinda-JammuSrinagar  Pipeline  (MBJSPL)  and  Mallavaram-Bhopal-Bhilwara-Vijaipur  Pipeline  (MBBVPL) projects.  This consortium has incorporated two  separate Special Purpose Vehicles (SPVs) viz. GSPL India Gasnet Limited (GIGL) and GSPL India Transco Limited (GITL) for development of these natural gas pipeline projects. GIGL is developing MBJSPL project of about 2100 Km length  which  traverses  through  total  29  Districts  in  the  States  of  Gujarat,  Rajasthan,  Punjab, Haryana  and  Jammu  &  Kashmir.  GITL  is  developing  MBBVPL  project  of  about  2042  Km length  which  traverses  through  total  33  districts  in  the  States  of  Gujarat,  Rajasthan,  Madhya Pradesh, Maharashtra, Telangana and Andhra Pradesh.

Both  the  above  projects  have  received  all  major  statutory  clearances  from  concerned authorities  viz.  Ministry  of  Environment  &  Forest  (MoEF),  Petroleum  &  Explosives  Safety Organization (PESO), Forest & Wildlife Authority etc.

Notifications under Section 3(1) and 6(1) of Petroleum and Minerals Pipeline (PMP) Act, 1962 have been published in official gazette for acquisition of Right of User (RoU) in all the States under these projects.

PNGRB has granted time extension to GIGL and GITL for completion of the above projects upto December, 2017.

The mode of investment in the said project is through Debt and Equity.  As on 30 th September 2016,  GIGL  has  invested  Rs  255  Crore  for  MBJSPL  project  and  GITL  has  invested  Rs  190 Crore for MBBVPL project.

(c) & (d): The Government of Gujarat in the month of October, 2016 has requested the Ministry of Petroleum & Natural Gas (MoP&NG), to consider a capital grant of 40% to GIGL and GITL for  the  development  of  MBJSPL  and  MBBVPL  projects  and  also  grant  of  authorization  for development  of  City  Gas  Distribution  networks  on  nomination  basis  on  the  lines  of  support provided to GAIL for its Jagdishpur-Haldia and Bokaro-Dhamra natural gas pipeline project.

However, prior to above, the Government of Gujarat had also approached the Ministry of Finance for financial support from the Asian Development Bank (ADB) to GITL for execution of  MBBVPL project.  Keeping in view the importance of this pipeline project, MoP&NG has conveyed its support to the request of Government of Gujarat for financial assistance from ADB to the Ministry of Finance in this regard.

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