The West Bengal Government today approved the draft agreement for a three-way joint venture between Hindustan Petroleum (HPCL), GAIL and State Government-controlled Greater Calcutta Gas Supply Company (GCGSC) for city gas distribution in Kolkata. The three companies previously entered in a MoU in this regard.
“The Cabinet committee of the West Bengal Government today approved the draft MoA (memorandum of association) between GCGSC, GAIL and HPCL,” the State Commerce and Industry Minister, Mr Partha Chatterjee, told newspersons at the Writers' Buildings here on Wednesday.
While, Mr Chatterjee did not elaborate on the proposal, it is understood that the three have proposed set up a SPV to run the CGD business backed by proposed supply of coal-bed methane from Durgapur Asansol region in the State or supply of natural gas from the East coast.
GCGSC supplies piped coal gas manufactured by Coal India Ltd at Dankuni in the industrial areas of the twin city of Kolkata and Howrah. The company (GCGSC) is the post-Independence avatar of city gas distributor Oriental Gas Company and has an extensive 700 km of pipeline network in sections of Kolkata and Howrah.
Since coal gas is a synthetic gas, GCGSC is reportedly not eligible to be regarded as a city gas distributor by the Petroleum and Natural Gas Regulatory Board. Naturally the proposed SPV, if created, would require fresh licence from PNGRB to expand its operations as a registered CGD operator.