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City Gas in India
City gas distribution or CGD refers to transportation and distribution of refined and ordered natural gas to consumers in domestic, commercial or industrial and transport sectors through a network of various kind of pipelines. CGD sector has has attracted several investors/companies to bid for cities to lay a Gas over the last decade.
Historically, Indian City Gas kind of system started in 1857 with incorporation of Bombay Gas Company and Oriental Gas Company. These both companies were distributing Coal Gas to users.
Later on City Gas companies have started City Gas Distribution system in few states of India. These states are Gujarat, Assam, Maharashtra, Delhi and U.P.
Up to 2002
Initially, with the efforts of Government and few business house, City Gas Distribution started as a true business opportunity. After discovery of Natural Gas in India, it was flaring. It was think off to convert flared gas into business. In Assam, Gujarat, Mumbai, U.P. and in Delhi, modern kind of City Gas Distribution started. These companies were Assam Gas, Vododara Municiple Corporation, Gujarat Gas, Mahanagar Gas and Indraprastha Gas. Adani Gas and HPCL has also started CGDs.
From 2002 to 2008
In 2002, Mr. M. C. Mehta logged a PIL regarding increasing pollution cities. Honorable Supreme Court of India has directed Ministry of Petroleum to take step in reduction of pollution in 16 cities. That was a mile stone for CGD in India. PSU Gas Marketing and Oil Marketing companies started Joint Venture CGD. These Companies are Avantika Gas Ltd in Indore & Gwalior, Bhagyanagar Gas Ltd in Hydrabad, Central U.P. Gas Ltd in Kanpur and Bareilly, Green Gas Ltd in Lucknow and Agra, and Maharashtra Natural Gas Ltd in Pune.
2008 onwards
Nov 2008 was another mile stone for CDG in India. After formation of CGD regulator in 2006, as Petroleum and Natural Gas Regulatory Board, Regulation came in existence in Nov 2008. PNGRB authorized all existing CGD companies with suitable target to create CNG and PNG infrastructure. PNGRB also started bidding for new cities with transparent bidding criteria. PNGRB's Bidding system create and develop an business opportunity for Govt. and Private partners to create an Eco System for Clean and Green fuel for India.
