PNG pipeline-laying charges reduced
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PNG pipeline-laying charges reduced

January 24, 2024

MP Pratap Simmha chairs progress review meeting; MCC to seek approval to continue pipeline works

Mysore/Mysuru: To speed up the faster implementation of city pipeline gas distribution infrastructure, the State Cabinet has drastically reduced the pipeline-laying charges of the ‘direct to home’ Piped Natural Gas (PNG) project from the earlier Rs. 1,956 to just Re. 1 per metre as land charges (or licence fee to allow the implementing company to dig the road).

Earlier, the company implementing the project had to pay Rs. 1,956 to the Mysuru City Corporation (MCC) for digging up one metre of the road to lay the pipeline. According to the Cabinet decision, henceforth, the project implementing company or agency has to pay Re. 1 per metre to the MCC to dig the road on its sides and lay the pipeline. After the pipeline is laid, the company has to re-lay the road and restore it to its original condition and the savings in the project cost must be passed on to the consumers.

This decision was conveyed by Mysuru-Kodagu MP Pratap Simmha at a progress review meeting of MCC Officers and the representatives of the company implementing the project in Mysuru city. MCC Commissioner Ashaad-ur-Rahman Shariff, MCC Deputy Commissioner (Development) K.J. Sindhu and other officials were present. 

Reviewing the progress of the Central Government project, the MP said that the steep road digging charges have been reduced to meet the energy demand and increasing the share of cleaner energy. This is a positive step towards achieving sustainable economic growth. Globally, the use of natural gas as fuel for cooking, industrial use and transport has resulted in significant changes in environmental conditions, he added.

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The MP pointed out that earlier, as per the decision taken by the MCC Council, the project implementing company had to pay the MCC Rs. 1,956 to dig one metre of the road (as land charges since the road belongs to MCC). “However, it was not viable and the steep cost was passed on to the end-consumers, increasing the gas prices and also the installation charges. The State Government was apprised of the situation and this is the reason for the PNG pipeline works being stopped in Mysuru,” Pratap Simmha noted.

Gas at cheaper rates

Now that the Cabinet has decided to reduce the digging charges to Re. 1 per metre, the MP urged the MCC Commissioner to give a go ahead to the project to the remaining areas of Mysuru. As of now the pipelines have been laid in Vijayanagar and Hebbal where PNG connections have been provided to over 500 homes and works are on to lay the pipelines at Kuvempunagar and Dattagalli. 

Pratap Simmha noted that the massive reduction in the digging and pipeline-laying charges would directly benefit the residents of Mysuru who can get the PNG at cheaper rates. Pipelines are also being laid in Hebbal Industrial Area, Kadakola and Nanjangud, the MP added.

Replying to the MP, MCC Commissioner Ashaad-ur-Rahman Shariff said that they have not yet received any order in respect to the reduction of the digging charges to Re. 1 from the earlier Rs. 1,956.

“There is no MCC Council to decide on it now due to pending elections and we will urge the Regional Commissioner, who is the administrator of the MCC, to write to the Urban Development Department to seek approval to continue the works as per the Cabinet decision of reduced rates,” he said.  Chief Operating Officer of AG&P, the project implementing company, Chirdeep Datta and local head Arun Nayak were present.

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