(a) the present status of gas distribution to consumers through pipelines, State-wise;
(b) whether specific approval of Union Government is required by the States to start such
distribution of gas;
(c) if so, whether it has come to the notice of the Government that some States have started this
scheme without approval of the Union Government;
(d) if so, the details thereof; and
(e) the steps taken by the Union Government to resolve the issue?
MINISTER OF THE STATE IN THE MINISTRY OF PETROLEUM
& NATURAL GAS (SHRI MURLI DEORA)
(a) to (e): A Statement is laid on the Table of the House.
STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) OF THE LOK SABHA STARRED
QUESTION NO. 326 TO BE ANSWERED ON 06.9.2007 BY DR. LAXMINARAYAN PANDEY AND
SHRI DHARMENDRA PRADHAN, MP REGARDING GAS DISTRIBUTION THROUGH PIPELINES.
(a): The details of trunk pipelines of GAIL (India) Limited are given in Annex. Apart from this, Joint
Ventures of GAIL with various Oil Marketing Companies have city gas distributions networks in
Delhi and suburbs, Mumbai and suburbs, Agra, Lucknow, Kanpur, Hyderabad and Vijaywada. City/
Local Natural Gas Distributions Networks have also been implemented in cities of Agartala, Ahmedabad,
Ankleshwar, Bharuch, Surat, Vadodara, Gandhinagar, Hazira, Junagam, Vasva, Mora, Damka, Bhatlai,
Kawas, Rajgiri, Suwali, Icchapore, Vidyanagar, Anand, Morbi, Duliajan, Digboi, Dibrugarh, Moran,
Naharkatiya, Sivasagar, Nazira, Simaluguri and Tinsukia. M/s Gujarat State Petronet Limited (GSPL)
has commissioned 1150 km of pipeline within Gujarat.
(b): Yes, Sir.
(c) & (d): Yes, Sir. A major part of the pipelines commissioned/being commissioned by GSPL in Gujarat
is without the authorization of the Government of India. Some State Governments, namely, Gujarat,
Haryana, UP and Rajasthan have authorized setting up of City/Local Natural Gas Distribution projects
or have initiated action for the same. Government of Gujarat has issued NOCs to various entities for
laying CNG network in the districts of Ahmedabad, Vadodara, Gandhinagar, Mehsana, Sabarkantha,
Rajkot, Surendranagar and Godhra districts, as also in Nadiad, Anand, Vapi, Valsad, Khambhat, Bilimora,
Navsari, Bhavnagar, Vankaner and Sarigam. Government of Uttar Pradesh, through UPSIDC, has issued
No Objection Certificates for implementation of city gas distribution projects in Lucknow, NOIDA,
Greater Noida, Moradabad and Ghaziabad. Similarly, Government of Haryana has granted No Objection
Certificate for city gas distribution projects in Faridabad, Gurgaon, Panipat and Sonipat.Government of
Rajasthan has granted NOCs to various entities for city gas distribution in the cities of Kota, Jaipur,
Udaipur, Bhiwadi and Neemrana.
(e): The Hon’ble Supreme Court in its order given in advisory jurisdiction on 25th March, 2004 in the
Special Reference No. 1/2001 has opined that natural gas, including Liquefied Natural Gas, is a Union
subject covered under Entry 53 of the Union List. Accordingly, the Union has exclusive legislative
competence to enact laws on natural gas. The states have no legislative competence to make laws
on the subject of natural gas.
Under Article 73 of the Constitution, the executive power of the Union extends to these matters, with
respect to which Parliament has the power to make laws. In view of the same, state Governments have
no power to authorize laying of trunk natural gas pipelines and City/Local Natural Gas Distribution
Networks
Further, the Government has notified, the ‘Petroleum and Natural Gas Regulatory Board Act, 2006’,
on April 3, 2006, which envisages Board’s authorization to entities to lay, build, operate or expand
trunk natural gas pipelines and City/Local Natural Gas Distribution Networks.The Petroleum and
Natural Gas Regulatory Board has since been constituted on June 25, 2007.
Government of India has requested the State Governments concerned not to initiate any action regarding
grant of NOCs/approvals pertaining to laying of trunk pipelines and City/Local Natural Gas Distribution
Networks.
Further, the Government has filed an Affidavit in the matter of M.C. Mehta V/s Union of India and others
(Writ Petition Civil 19029/85) requesting the Supreme Court to clarify that State Governments have no
authority or jurisdiction to make any policy for transmission, supply and distribution of natural gas, and
for city gas distribution, in view of the opinion given by the Supreme Court in the Presidential reference
matter.
Annex refer to L. S. Starred Q. 324 for 6.9.07
DETAILS OF GAS PIPE LINES :
LENGTH IN Kms. GUJARAT 1553 TRIPURA - 61 ASSAM 8 TAMILNADU 259 ANDHRA PRADESH(AP) 834 MADHYA PRADESH(MP) 1421 RAJASTHAN 500 UTTAR PRADESH(UP) 1477 MAHARASTRA 482 HARYANA 86 DELHI 96
TOTAL NATURAL GAS 6777 PIPELINES GAS PIPELINES