₹538 Crore City Gas Distribution Project Sees Little Progress After Four Years in J&K

Less than 1% of project cost spent, while ₹7,392 crore natural gas pipeline nears completion

Newsdeskteam
3 Min Read

The ambitious ₹538 crore City Gas Distribution (CGD) Project, aimed at supplying Piped Natural Gas (PNG) to households and industries and Compressed Natural Gas (CNG) to vehicles across five districts of Jammu division, has witnessed negligible progress despite being under implementation for more than four years.

According to the latest report on Central Sector Infrastructure Projects, the CGD project covering Jammu, Udhampur, Reasi, Samba and Kathua districts has incurred an expenditure of only ₹4.32 crore against the total sanctioned cost of ₹538 crore, accounting for less than one per cent of the project cost.

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Approved in March 2022, the project is now scheduled for completion by September 2034, as informed by the Ministry of Petroleum and Natural Gas to the Government of India.

The project aims to establish infrastructure for supplying Piped Natural Gas (PNG) to domestic, commercial and industrial consumers while also creating a network of Compressed Natural Gas (CNG) stations to promote cleaner fuel for vehicles across the region.

In contrast, the ₹7,392 crore Mehsana-Bhatinda-Bhatinda-Jammu Natural Gas Pipeline, which will supply gas to the region, has made significant progress. The pipeline project has recorded expenditure of ₹6,357.26 crore, nearly 86 per cent of its total cost, and is targeted for completion by March 2027.

The Gurdaspur-Jammu section of the pipeline has also achieved over 81.6 per cent physical progress, with expenditure of ₹310.30 crore against the original project cost of ₹521.90 crore.

Officials have expressed concern that the slow pace of the City Gas Distribution Project could delay the benefits of the nearly completed pipeline, as households, industries, commercial establishments and vehicles will not be able to access PNG and CNG without the last-mile distribution network.

They warned that the delay could also lead to under-utilisation of the massive public investment made in the natural gas pipeline if the distribution infrastructure is not completed in tandem.

Once operational, the CGD network is expected to reduce dependence on conventional fuels, promote cleaner energy, lower fuel costs and encourage industries and transport operators to shift to natural gas.

Officials also pointed to the need for better coordination among departments, noting that delays in execution could postpone the economic and environmental benefits of the project by several years.

The Department of Food, Civil Supplies and Consumer Affairs, the nodal agency for the project in the Union Territory, has not disclosed the reasons behind the slow progress despite repeated requests.

(Agencies)

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