PROCEEDINGS OF THE GOVERNMENT OF KARNATAKA

Sub: Natural Gas demand Assessment Studies for Karnataka – Compilation of data by TECSOK.

Read: 1. Proceedings of the meeting held on 06.11.2008 under the Chairmanship of Chief Secretary to Govt. of Karnataka.

2. Proceedings of the meeting held on 9.04.2009 under the Chairmanship of Principal Secretary to Govt., of Karnataka, IDD.

3. MoU for Natural Gas Infrastructure and City Gas Distribution entered in to between GAIL India Ltd., and Infrastructure Development Department on 29.04.2009.

4.  Letter No.GAIL/BBO/NG/TECSOK/2009/221 dated 16.05.2009 from DGM (Mktg.) GAIL India Ltd addressed to CEO and Chief Adviser, TECSOK.

5. Proceedings of the meeting held on 27.05.2009 under the Chairmanship of Principal Secretary to Govt., of Karnataka, IDD.

6. Letter No.TECSOK / IDD-NG/2009/270 dated 30.5.2009 from CEO and Chief Adviser, TECSOK.

7. Letter No.GAIL/BBO/NG/TECSOK/2009/221 dated 30.05.2009 from DGM (Mktg.) GAIL India Ltd.

Preamble:

In the proceedings read at (1) above, the following decisions were taken for implementation of projects for transmission and distribution of Natural Gas:-

(i)  Infrastructure Development Department (IDD) will be the nodal agency to interact with PNGRB;

(ii)  IDD to convene a meeting with M/s. GAIL, Reliance, Adani, GSPC to examine whether the Gujarat model could be adopted;

(iii)  IDD to respond PNGRB queries before end of November 2008;

(iv)  Right of Way for laying gas pipelines to be given by PWD and local bodies on priority as per the Master Plan approved by PNGR.

2. In the proceedings read at (2) above, a meeting was held with all the concerned departments and GAIL regarding laying Gas Pipeline from Maharastra Border to Bidadi near Bangalore by GAIL and a decision was taken to request Tecsok to update the market survey report (prepared for GAIL in 2005) and to provide the latest data on future projects. Karnataka Udyoga Mitra (KUM) was advised to identify the location of the proposed industries. GAIL to prepare an MoU to be signed between GAIL and GoK (KSIIDC).

3. Accordingly, an MoU was entered into between GAIL India Ltd., and IDD on 29.04.2009 to under take jointly for promotion of CNG and PNG in transport and domestic sector and IDD will act as a nodal agency for coordinating all necessary permissions and clearances from various departments / authorities. The role of IDD is limited to facilitate the GAIL to lay the pipeline by providing the land for RoW on payment basis and no additional financial is expected to exchequer of the State Government. The MoU will be in effect for a period of 3 years, which may be extended with mutual consent.

4. In the letter read at (4) above, GAIL India Ltd., has requested to update the report on market potential for Natural Gas in Karnataka conducted by M/s. Tecsok in 2005 for GAIL India Ltd.

5. In proceedings read at (5) above, decision was taken to request the Tecsok to update the available information and to furnish a ToR to IDD and the expenditure towards this will be met by IDD.

6. In the letter read at (6) above, Tecsok has sent the proposal for taking up the assignment and also said that it has started the collection of information from Karnataka Udyoga Mitra and Road Transport Corporation. It is said that the professional fee for the assignment is Rs.4.00 lakhs and has requested to release Rs.2.00 lakhs on confirmation of the assignment and the balance on submission of the report.

7. In the letter read at (7) above, GAIL requested to include the information relating to availability of Natural Gas and willingness of existing industries to convert the Natural Gas and also whether the industry is Natural Gas based or needs to be converted to Natural Gas in future.

8. The proposal has been examined in detail and the following orders are issued.

GOVERNMENT ORDER NO. IDD 14 UIP 2008

BANGALORE, DATED 22.06.2009

Approval is hereby given for Tecsok to take up the assignment of compilation of data required to be provided as an input to GAIL and to update the available information and to furnish a Terms of Reference (ToR) to Infrastructure Development Department. ToR should also include the following points:-

(i)  To provide the available Natural Gas information for requirement of gas in two categories namely existing and expansion / upcoming / future consumers.

(ii)  Willingness of existing industries to convert to natural gas, if, willing by which year?

(iii)  In respect to expansion / upcoming / future consumers, whether the industry is natural gas based or need based and to be converted to natural gas in future and the likely year of gas consumption.

2. Sanction of the Government is hereby accorded for release of Rs.2.00 lakhs (Rupees two lakhs) only to Tecsok towards the assignment. Final cost would be decided based on man-days / hrs. to be furnished by Tecsok.

3. This expenditure shall be met from the Head of Account “3451-00-090-1-06-059-Infrastructure Preliminary Studies Other Expenditure” out of the budget provision of Rs.881.00 lakhs in 2009-10.

4. The CEO and Chief Adviser, TECSOK is authorized to draw the amount on a Payees Receipt duly countersigned by the Under Secretary to Government, Infrastructure Development Department.

5. This order is issued in accordance with the delegation of powers to the Principal Secretaries / Secretaries to Govt., vide G.O.No. FD 1 TFP 2008 dated 16.05.2008.

By order and in the name of the

Governor of Karnataka,

(N.Manjula Geetha)

Under Secretary to Government,

Infrastructure Development Department.

To:

The Compiler Karnataka Gazette for publication in the gazette of next issue and to supply 50 copies to this department.

Copy to:

1)  The Principal Accountant General in Karnataka, Bangalore.

2)  The Accountant General in Karnataka (A & E), Bangalore.

3)  The CEO and Chief Adviser, TECSOK, 4th Floor, Basava Bhavan, Basaveshwara Circle, Bangalore – 560 001.

4)  The DGM (Mktg.), GAIL (India) Ltd., Corporate Miller (2nd Floor) 332/1, Thimmaiah Road, Off:Queens Road, Vasanthnagar, Banglore – 560 052.

5)  The Under Secretary (Exp.I), Finance Department, Vdihana Soudha.

6)  The Senior Director, PF & R Divn., Planning Department, MS Building II Stage, Bangalore.

7)  The Joint Director / Treasury Officer, SHT, NT Road, Bangalore-560 002.

8)  PS to Hon’ble Minister for IDD.

9)  P.A. to PRS, IDD / PS to Spl. Secretary, IDD/ PA to JS, IDD / PA to DS, IDD.

10)  S.G.File / Spare copies.

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