Do in India to get an increase of Rs 22,000 million from the city's gas expansion

NEW DELHI: The Fast expansion in town gas networks undertaken by the Modi the government will open a market of Rs 22,600 crore Make in India for auxiliary equipment needed for pipes natural gas to homes and to refuel CNG vehicles, say a lot of government notes.

According to the notes, prepared for an oil ministry event on Thursday to showcase India’s CGD (city gas distribution) programme, the expansion of CNG and PNG services will also create nearly four lakh direct employment opportunities by 2027. The projections are bound to lift the mood as it come amid slowing economic growth.

Only 34 GAs (geographical areas, akin to license areas across districts in a state) in the country had city gas distribution networks until 2014. Since then, government has given out 174 GAs for building city gas distribution networks. After 136 GAs are given out in the ninth and 10th rounds of auction, city gas distribution networks will cover 70% of the population and 53% of the country’s geographical area spanning 400 districts across 27 states.

The program has an estimated investment potential of Rs 90,000 crore.

The number of households with PNG connections will increase to more than 4 million rupees of 55 lakh, while the number of CNG stations will increase from 1,838 to 10,000 by 2024.

Such a scale of network expansion will need huge quantities of pipes, mechanical and smart meters, PNG regulators, compressors and boosters pumps etc, which will open up opportunities for domestic manufacturing. Similarly, the notes say there will be demand for 3.75 lakh skilled, semiskilled and unskilled manpower to run and maintain the networks. According to the government, 31% of this manpower requirement will be for skilled personnel, 56% for semi-skilled and 13% for unskilled workers.