Moily asked to direct GAIL to implement Kochi-Mangalore pipeline
From Our Special Correspondent
Daijiworld Media Network - Bangalore
Bangalore, Mar 6: Karnataka Chief Minister Jagadish Shettar has urged Union Petroleum and Natural Gas Minister M Veerappa Moily, who hails from the coastal Dakishina Kannada region, to direct the Gas Authority of India Ltd (GAIL) to take steps to implement the Kochi-Koottanad-Mangalore-Bangalore pipeline (KKBMPL) without delay to spur growth and development of the State.
The Chief Minister, who has written separate letters to the Union Minister, said the Kochi-Mangalore line was expected to be commissioned by the Central Public Sector Undertaking GAIL in 2013 as part of the recently commissioned 1000 km Rs 4,500 crore Dabhol-Bangalore Natural Gas Pipeline (DBPL) with a capacity of 16 MMSCND of natural gas
''It is understood that GAIL would not be able to commission the Kochi-Mangalroe line in 2013 as planned earlier due to inordinate delays in the project for reasons beyond their control," Shettar said and expressed grave concern over media reports that GAIL ''may also consider dropping this leg if similar situation persists for some more time."
Releasing copies of his letter to Moily, the former chief minister of Karnataka, Shettar said: ''It is a matter of grave concern to the Government of Karnataka that the consumers of Mangalore, some of whom have assumed availability of natural gas in their project plans, would suffer extensively due to delay in the availability of natural gas."
''This would trigger serious sustainability issues for some of these organizations raising concerns about jobs that these organizations have created or are likely to create in this area," the chief minister said pointing out that GAIL’s KKBMPL project was ''expected to bring gas transmission infrastructure to Dakshina Kannada region for the benefit of industries in and around Mangalore and parts of Bangalore Rural and Urban districts."
The State Government has been very supportive and GAIl has also been proactive in responding to the suggestions of the State Government regarding creation of gas infrastructure in Karnataka, the chief minister said describing the Dabhol-Bangalore natural gas pipeline (DBPL) as a ''game-changer in the Karnataka growth story."
''Mangalore is one of the most industrialized regions in Karnataka and the economic progress of this region is a source of pride to all of us," he said explaining that Mangalore was the largest energy consuming region in the State due to the presence of industries like MRPL, KIOCL, MCF and a cluster of small and medium scale industries.
The Rs 4,500 crore DBPL project with a capability of transmitting upto 16 MMSCMD of natural gas was planned to operate at a low load initially. The proposed mega fertilizer plant at Belgaum and the power plant at Bidadi, in the city outskirts, were planned to start utilizing natural gas within two to three years. Naturally, the DBPL project was expected to have sufficient surplus capacity to cater to Dharwad, Bhadravathi in Shimoga district and meet the requirements of Mangalore and Udupi districts..
The Chief Minister apprised Moily that the Mangalore Special Economic Zone (SEZ) was established with a view to capitalize on the port infrastructure for export-oriented activities and gain from the opportunities for setting up units downstream of the refinery.
''We have already seen major investment in the SEZ with the setting up of ONGC Mangalore Petrochemicals Ltd (OMPL). We are also hopeful that many more companies like JBF Industries Cardolite Corporation and Nagarjuna Group would start operating their proposed facilities in the SEZ soon," he said pointing out that Bhadravati in Shimoga district with its steel processing unit of SAIL was a major paper processing hub of the State, though the region, was not covered by GAIL’s pipleline infrastructure.
Shettar explained that two spur lines from DBPL – connecting Mangalore, Shimoga and Udupi and linking the twin cities of Hubli and Dharwad – of about 300 kms and 60 kms in length respectively would vastly help in meeting industrial, commercial, petroleum natural gas (PNG) and compressed natural gas (CNG) requirements of these cities besides providing cleaner environment to the residents.
The Chief Minister urged Moily to advise GAIL to take up the necessary project activities and ensure that Dabhol-Bangalore pipeline was connected to Dharwad, Bhadravati, Udupi and Mangalore at the earliest as it would ensure necessary natural gas connectivity for optimal utilization. It will also ensure critical gas supplies for use as fuel or feedstock to reach big industrial consumers such as MRPL, OMPL, MCF, KIOCL etc and also present a strategic option for high priority projects such as the Indian Strategic Petroleum Reserves Ltd (ISPRL) coming up between Mangalore and Udupi.
''Ensuring availability of natural gas at Dharwad, Hubli, Bhadravati/Shimoga, Udupi and Mangalore will be of immense help in not only reducing pollution levels but also in providing a fillip to further industrial development of all these cities," Shettar said promising to provide ''all required help to GAIL for execution of the pipeline connectivities to the region."
In another letter on the same subject, the chief minister mentioned that natural gas has emerged as a key energy resource for the economic development of any region and the availability of natural gas infrastructure is critical for the development of the state.
The DBPL initiative has brought natural gas to the people of Karnataka for the first time and gas supply has been commenced at Bangalore. The pipeline passes through Belgaum, Dharwad, Gadag, Bellary, Devanagere, Chitradurga, Tumkur, Ramanagaram, Bangalore Urban and Rural districts.
The project involves laying of 73 km of 18 inch diameter pipeline in Bangalore and with the commencement of natural gas supply, he said city’s alarming rise air pollution level could be checked by promoting the use of natural gas as transport fuel. Karnataka was keen to roll out CNG infrastructure in Bangalore on priority.
He said Karnataka State Industrial Infrastructure and Development Corporation (KSIIDC) and GAIL have signed a Joint Venture Agreement to form a Joint Venture (JV) Company for distribution of gas to various consumers in the State. The Roll out of CNG infrastructure in Bangalore can be carried out by the proposed joint venture company of KSIIDC and GAIL and urged Moily to ensure that Bangalore and most of cities in Karnataka were able to get ''clean fuel."