CGD players facing hurdles in setting up business: DK Sarraf

CGD players facing hurdles in setting up business: DK Sarraf

DK Sarraf said that CGD players are facing difficulties in attaining clearances for laying pipelines from Railways, NHAI, forest department, among others

New Delhi: City Gas Distribution (CGD) players in the country are facing some serious hurdles in setting up CGD business, Chairman of Petroleum Natural Gas Regulatory Board (PNGRB) DK Sarraf said on Monday. "Let me confess that what has been done by team PNGRB is far easier than what remains to be achieved by CGD companies. Our CGD entrepreneurs are facing difficulties in getting Right of Use and permissions for laying pipelines from Indian Railways, NHAI, forest department and state governments," Sarraf said on the sidelines of an event held to mark the commencement of work on the 10th CGD bidding round.

'Single-window clearances in place only in few states'

"The entities are required to pay very high charges to the state governments and municipal corporations for permissions to lay pipelines. The policies for CGD sector and single-window clearance mechanism is in place in a few states. Multiple and time-consuming permissions and clearances are required for starting CNG stations, availability of land for stations is another challenge. Most importantly, GST remains to be applicable on natural gas," Sarraf said.

He added that the downstream oil sector regulator and the industry are confident that the bottlenecks will be resolved.

'Industry fully charged'

Commenting on the current situation, Sarraf said that the industry is fully committed to make an additional investment and create jobs. Any impetus given by the government will reap manifold dividends in developing the gas industry in India. As per the minimum work programme approved by the PNGRB for the 10th round, 2.
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02 crore PNG domestic connections will be provided, 3,578 CNG stations will open, and 0.58 lakh inch-km steel pipeline will be laid at an investment of Rs 50,000 crore.

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