MoU For Gas Pipeline To Kashmir Being Finalised

21 March 2008

Jammu: Much awaited gas pipeline to Jammu and Kashmir is now set to become a reality, as the state government is finalizing a MoU with the Gas Authority of India (GAIL) for laying the pipeline. The GAIL has recently submitted to the state government the revised and final draft MoU, which is being studied by the Law Department, official sources told Greater Kashmir here today. The Law Department has suggested modifications and deletions of some clauses and final draft is expected to be ready by March end, sources said. On 26 March 2004 a Gas Cooperation Memorandum of Understanding (GMC) was signed between the GAIL and J&K SIDCO. The SIDCO would act as nodal agency fort facilitating and coordinating the activities of GAIL in the State during the course of implementation of the project. The GAIL had agreed to lay gas pipelines to several feasible districts for distribution of gas in the state. It will also help in promoting usage of natural gas, its fractions and polymer products in Jammu and Kashmir. During past few years it conducted techno-economic feasibility studies based on gas demand, potential and geographical distribution of gas and allied facilities in the State. As per survey, it will connect 8 districts through pipeline network in first phase besides 4 gas depots. GAIL also studied gas usage, mapping of energy requirements for CNG, Power, Infrastructure, and identification of clusters, the sources said. The GAIL agreed to extend gas pipeline to feasible districts of Jammu and Kashmir where a proper pipeline network can be laid. It will also help in promoting usage of natural gas, its fractions and polymer products in the State. The MoU will envisage setting up of a 9-member coordination group that will meet once a month to coordinate the activities and set a time frame for implementation of MOU. The GAIL has studied the demand potential of natural gas, polymer and liquid hydro carbons, priorities specific industrial zones for implementation for chalking stage-wise development of infrastructure for distribution of gas, processing of polymers and liquid hydro carbons to the doorsteps of consumers are the other salient features of the MoU. Subsequently, CNG facilities would be introduced in the state, sources said.