RESPONSE TO THE CLARIFICATIONS SOUGHT 1
CGD BID ROUND 4
S.No Issue Clarification Sought Response
1
The vast extent of the GAs
covered in the 4th Round
affects the commercial
viability of the CGD Projects/
Reduction in size of GA /
Minimum Work Programme
(MWP) for achieving year wise
Inch- KM and Domestic PNG
Connections Targets
It is suggested that the "Minimum Work Program"
(MWP) should be based on city area, although
authorization can be granted on District basis.
PNGRB has amended the MWP vide
PNGRB (Authorizing Entities to Lay,
Build, Operate or Expand City or
Local Natural Gas Distribution
Networks) Amendment Regulations,
2014. Considering the vast area of the two districts
where an entity has to lay several KMs of pipeline
without any potential, PNGRB may consider to
revise the boundary limits to urban city area only
in place of the districts as a whole.
We had earlier expressed our concern on the large
size of GAs'. We request the PNGRB to kindly
consider re-defining the size of the GAs' in the Bid
Round 4.
A multiplication factor of 2.696 has been used to
arrive at the total Inch- KM of Steel to be
considered for the first 5 years for all the GAs.
Kindly clarify the basis of this multiplication
factor.
The targets stipulated by PNGRB for Inch-KM of
steel network as well as PNG / domestic
connections are unrealistic and unachievable. The
Minimum Work Program for providing PNG
domestic connection therefore needs a thorough
review.
What will be the criteria to determine the business
RESPONSE TO THE CLARIFICATIONS SOUGHT 2
CGD BID ROUND 4
commitments or objectives regarding
infrastructure to be developed? The target
development percentage will be on a households
or population basis?
2
Petition before Hon'ble
Supreme Court
There is a huge commercial risk involved for
bidders as the critical parameters of Network
Tariff ("NT") and Compression Charges ("CC")
have been made subject to the decision of the
Hon'ble Supreme Court (presumably in SLP(C)
No. 22273 of 2012).
The matter relating to the tariff
applicability to the transporter’s own
gas transportation continues to be
subjudice in the Hon’ble Supreme
Court. Hence, prospective bidder may
consider this aspect while submitting
the bid. Page No. 2 Point No.2 of Bid Document : Tariff
applicability to the transporter's own gas
transportation would be subject to the Supreme
Court decision, in the SLP No. 22273 of 2012
Kindly Clarify.
As the matter is sub-judice, thus, PNGRB is
requested to suitably consider its implications
under Change in Law.
As the case remains pending, how does PNGRB
plan to apply it if the decision is announced prior
to bid submission or post award of authorization.
PNGRB is requested to give due consideration in
the bidding document in this regard. The matter
leaves uncertainty in terms of key commercial
structure of the tariff.
RESPONSE TO THE CLARIFICATIONS SOUGHT 3
CGD BID ROUND 4
As you are aware that Delhi High Court has
already declared that Transportation tariff is
applicable to the third party using the network of
the Authorised entity and has quashed NT and CC
Regulations. Under this circumstance it would not
be prudent and will be incorrect to proceed with
the bidding process considering these two
parameters of NT and CC. In such a scenario of
uncertainty and considering that NT and CC are
the only two bidding parameters, there is a huge
financial risk for the bidders.
3 CNG stations can also be setup
on a standalone basis without
the authorization of PNGRB
CNG stations can also be setup on a standalone
basis without the authorization of PNGRB as
clarified by Ministry of Petroleum and Natural
Gas (MOP&NG).
MOP&NG, Government of India, vide its letter
No. L-16021/9/2013 LGP( FTS No. 27752) dated
16.09.2013. However, it is observed that PNGRB
has impliedly covered CNG Stations in the 4th
Round by inviting quotes for "Compression
Charges".
It is therefore imperative that the CGD
Regulations as amended recently in this regard call
for modification so as to make it compliant with
the clarification issued by MOP&NG before
proceeding with the 4th Round. It may also be
noted that setting up of CNG station is also not
part of MWP. It is therefore imperative that the
While the matter relating to
establishment of CNG stations is
currently under subjudice, MOP&NG
vide letter No. L-16021/9/2013-GP
dated 5th Feb 2014 has conveyed that
no entity except those (i) Who are
authorised by PNGRB under PNGRB
Act, 2006 to establish a city or local
gas distribution network in their
respective Geographical Area, or (ii)
Who are deemed to have authorisation
under PNGRB Act, 2006 for
establishing a city or local gas
distribution network in their respective
Geographical Area, may set up a new
CNG station till further order.
RESPONSE TO THE CLARIFICATIONS SOUGHT 4
CGD BID ROUND 4
CGD Regulations as amended recently in this
regard call for modification so as to make it
compliant with the clarification issued by
MOP&NG before proceeding with the 4th Round.
Do you think central or regional governments will
publish any possible future environmental
regulations that will dove the growth of this
segment? Can a third party (other than CGD
Company) invest in CNG within a CGD area?
Besides marketing, can this third party also
compete in compression charge tariff?
4 Rights/Obligations of Pipeline
entity Vs CGD entity
In terms of the Petroleum and Natural Gas
Regulatory Board (Authorizing Entities to Lay,
Build, Operate or Expand Natural Gas Pipelines)
Regulations, 2008, GAIL (India) Limited, either
by itself, or through its 100% subsidiary GAIL
Gas Limited, is under an obligation to lay spur
pipelines emanating from Trunk line within the
Tariff Zone corridor i.e., up to 50 Kms or 10% of
the trunk-line length, whichever is lower, on either
side of the Natural Gas Pipeline ("Tariff Zone")
and supply the same to the customers desirous of
taking gas as a fuel or as a feedstock at the
regulated tariff. Any grant of right/ authorization
to an entity on a sub-optimal plane, where a
distribution network is envisaged on a lower
pressure network, cannot be to the exclusion of the
As per the Petroleum and Natural Gas
Regulatory Board (Authorizing
Entities to Lay, Build, Operate or
Expand Natural Gas Pipelines)
Regulations, 2008 only the authorised
entity is under an obligation to provide
connectivity to the consumer within a
tariff zone in a natural gas pipeline on
receipt of a specific request, the
consumer undertaking to pay the
applicable natural gas pipeline tariff,
subject to availability of capacity and
the technical and economic viability of
the proposed connectivity. Further, for
supply of natural gas to any customer
within a given geographical area, the
RESPONSE TO THE CLARIFICATIONS SOUGHT 5
CGD BID ROUND 4
supply of gas directly by the authorized pipe line
entity. Such exclusion will totally deplete the
small potential of NG supply from the Pipeline
system and make the infrastructure a non
performing asset.
Therefore the GAs must be modified or else the
exclusivity must be clearly redefined to provide
for non-abrogation of the right of pipeline entity to
reach out to customers downstream.
provisions contained under Regulation
3(2) the Petroleum and Natural Gas
Regulatory Board (Authorizing
Entities to Lay, Build, Operate or
Expand City or Local Natural Gas
Distribution Networks) Regulations,
2008 shall prevail
5 The condition of submission of
additional bid bond for
resolving a potential Tie
among bidders.
Such a condition will clearly benefit entities
having recourse to large amount of funds which,
however, will not be put to any efficient
utilization. While there is no clarity about the
manner in which bidding entities will be asked to
submit additional bid bond, this criteria itself
needs revision so that it leads to
efficient/predictable utilization of resources. These
criteria will also not lead to logical bids and will
restrain government companies from bidding.
Provisions of the Regulation 7(3) of
the Petroleum and Natural Gas
Regulatory Board (Authorizing
Entities to Lay, Build, Operate or
Expand City or Local Natural Gas
Distribution Networks) Regulations,
2008 shall prevail.
6 Clarity on GA Maps of of
Thane , Raigarh and Pune/
Scope of Maps provided
Clarifications on the following GA's are required:
• Rangareddy
• Raigarh
• Pune
• Thane
These maps are indicated with descoped area.
These maps do not indicate the correct extent to be
The maps provided already have
required coordinates (latitudes and
longitudes) to show exact extant of
area under bid and the areas that are
already excluded have been clearly
earmarked on the GA maps. However,
based on the inputs received from M/s
Mahanagar Gas Limited, the GA maps
of Thane district and Raigarh district
RESPONSE TO THE CLARIFICATIONS SOUGHT 6
CGD BID ROUND 4
descoped. We request you to provide details of the
area to be descoped and issue a micro level map
indicating the already allocated authorization and
current area of authorization
1) A).Rest of Thane - Clarity on charge areas viz.
Bhiwandi (CA-09), Kalyan CA -11) and
Ambarnath (CA-11), part of which have been
awarded to M/s MGL B) Rest of Raigarh - Similar
to the query on Rest of Thane, we seek clarity on
Panvel Charge Area as part of the taluka seems to
have been awarded to M/s MGL already.
2. Please clarify the extent of area already handed
over.
3. Clarify the details/area that are excluded from
scope. Details are not clear in document.
have been slightly modified. These
maps are enclosed and also available
on PNGRB’s website
www.pngrb.gov.in.
There is no change in the district GA
maps of Ranga Reddy & Medak and
Pune.
7
Tap Offs related information/
Pipeline Connectivity
The Pressure, Temperature, flow rate at the Outlet
Point of the Tap Off mentioned in Tender
Document & Gas Composition & other parameters
is vital for Hydraulic Simulation. We request
PNGRB to provide the same. Kindly confirm all
of the above.
Will the piping / gas sourcing being proposed to
be different from already existing system or can
we use the same?
Refer Clause 1.1.4 of the Application
–Cum -Bid Document (ACBD).
RESPONSE TO THE CLARIFICATIONS SOUGHT 7
CGD BID ROUND 4
It has also been observed that the current Grid
pipeline (EWPL) operator is charging very high
connectivity charges, besides not carrying out any
last mile connectivity to any prospective
consumers from EWPL tap off points to the
industries seeking RLNG, even though the plants
is located within 50 Km corridor. This would
make City Gas distribution commercially un-
viable.
We request PNGRB to provide technical details
such as pressure at tap-offs for GA.
8 Gas allocation for meeting
domestic obligation/ Related
issues
Request PNGRB if it is possible to assist the new
entities secure domestic gas allocation for the
household segment?
MoP&NG, Government of India
decides allocation policy for domestic
gas and swapping guidelines Further,
refer Clause 1.1.4 of the ACBD.
As you are aware, that the sourcing of gas shall be
total responsibility of successful bidder. In present
scenario, neither APM gas is available nor there is
scope for sourcing RLNG from western offshore
facilities in the state of Andhra Pradesh. Presently
RGTIL is not allowing swapping of gas to source
RLNG due to which even the established entity
like M/s BGL is finding it difficult to source the
gas and are restricted to use APM quota of gas
only. Even if swapping is allowed by intervention
of PNGRB, the cost of landed RLNG in the state
of AP due to transportation charges and inter-state
taxation is making CGD a commercially unviable
RESPONSE TO THE CLARIFICATIONS SOUGHT 8
CGD BID ROUND 4
project.
In line with the MoP&NG Guidelines dated 3'·
February 2014, how often will the demand of
CNG (transport) and PNG (domestic) segments be
reviewed to update the domestic gas allocation to
each CGD entity?
Regarding the sourcing of R-LNG by the CGD
entity to supply industrial and commercial
demand, and taking into consideration the wide
variety of DES prices of LNG in the different
contracts (GAIL’s, Petronet's and other players),
are there any rules to prevent discriminatory
allocation of costlier R-LNG to new CGD entitles
or other Wise is. there an established mechanism
to allocate R-LNG volumes with the objective to
provide a uniform price to all CGD entitles?
Can a third party have access to local gas
allocation to compete in marketing within a
CGD?
In case a new CGD entity geographical area is not
physically connected to domestic gas fields by
pipelines (i.e. Emakulam District), will it still
receive the domestic gas allocation according to
MoP&NG Guidelines? Are swapping
arrangements mandatory for GAIL? In case of
swapping arrangements, what
are the rules to establish the effective transmission
RESPONSE TO THE CLARIFICATIONS SOUGHT 9
CGD BID ROUND 4
costs for the swapped volumes?
9 Marketing Margin How is established the marketing margin charged
by Gail and other wholesalers to gas supplied to
CGD entities? Is it a regulated matter for all
domestic gas (APM and non-APM) and all
R·LNG volumes?
PNGRB does not regulate marketing
margin for natural gas supply to CGD
entities.
10 Technical qualification criteria
5 (6) (b) and 5 (6) (c)
The board may please clarify if the four routes
mentioned under the respective clause are
mutually exclusive i.e. if meeting of one of (i) or
(ii) or (iii) or (iv) criteria on a standalone basis is
adequate for an entity to qualify under the
respective clause 5(6)(b)?
The board may clarify if the four routes mentioned
under the respective clause are mutually exclusive
i.e. if meeting of one of (i) or (ii) or (iii) or (iv)
criteria on a standalone basis is adequate for an
entity to qualify under the respective clause 5(6)c?
Any one of the criterion has to be
fulfilled.
11 Regulations G.S.R. 196 (E),
Sub-regulation 14, Service
obligations of an authorized
entity (post commissioning) / 7
(a) and Marketing &
Infrastructure exclusivity
The authorized entity shall ensure that - (a) there is
no cross-subsidization of the costs between the
activity of transportation and the activity of
marketing of natural gas in the CGD network after
the expiry of exclusivity period. PNGRB to clarify
if the exclusivity period above refers to:
i) exclusivity for laying, building or
expansion of CGD network - economic life (25
years)
OR ii) exclusivity from the purview of common
The exclusivity period referred to in
this regard relates to the exclusivity
from the purview of common carrier
or contract carrier.
RESPONSE TO THE CLARIFICATIONS SOUGHT 10
CGD BID ROUND 4
carrier or contract carrier - 5 years from date of
authorization
Previous bidding round had 5 years of marketing
exclusivity and 25 years of Infrastructure
exclusivity PNGRB regulations also discusses
about these exclusivities. PNGRB is requested to
confirm whether these exclusivities are applicable
or not in the current round as their absence greatly
diminishes the business viability.
Applicability of exclusivities will be as
per the provisions of the Petroleum
and Natural Gas Regulatory Board
(Exclusivity for City or Local Natural
Gas Distribution Network)
Regulations, 2008
Earlier bidding round had 5 years of marketing
exclusivity and 25 years of Infrastructure
exclusivity. PNGRB regulations also discusses
about these exclusivities. PNGRB is requested to
confirm these exclusivities are also applicable in
the current round at 5 years (marketing
exclusivity) and 25 years (infrastructure
exclusivity), as given in earlier rounds of bidding.
A suitable provision in the Bid document should
mentioned clarifying on the exclusivity.
12 After the 25 years period granted what happens
with the permit? Are there mechanisms to
renewal?
Refer Regulation 5 of the PNGRB
(Exclusivity for City or Local Natural
Gas Distribution Network)
Regulations, 2008.
13 As per PNGRB regulations, a CGD entity is
allowed network exclusivity for 25 years and
marketing exclusivity for 5 years from the date of
authorisation. The period of marketing exclusivity
Provisions of the PNGRB (Exclusivity
for City or Local Natural Gas
Distribution Network) Regulations,
2008 shall prevail.
RESPONSE TO THE CLARIFICATIONS SOUGHT 11
CGD BID ROUND 4
of 5 years is a very short period as network
construction itself takes 2 to 3 years. Hence
marketing exclusivity period needs review and
may be enhanced for at least 10 years.
14 Regulations on Access code for
City or Local Natural Gas
Distribution Networks, 2011:
Capacity booking Sub-
regulation 5 (4)
The sum of the requested entry points maximum
daily quantity (MDQ) shall be
greater than or equal to 10000 scmd and the sum
of cumulative off-take at relevant exit point shall
be greater than or equal to 100 scmd for domestic
segment. The shipper can start gas sales after
booking capacity in any of the domestic, industrial
or commercial customers but second such supply
shall be considered once they have achieved 100
scmd supplies to domestic customers.
PNGRB to confirm if the above implies the
following:
i) The shipper booking capacity via open access
arrangement has to achieve a minimum of
domestic household segment sales prior to selling
it to industrial /commercial segment
ii) PNGRB to also clarify if the above condition
holds true in case of transport segment as well? If
not kindly provide possible reasons, if any for
exclusion of transport segment.
Provisions of the PNGRB (Access
Code for City or Local Natural Gas
Distribution Networks) Regulations,
2011 shall prevail
15 Submission of Technical Bid /
Serial no. 5 of Page 33
Submission of technical documents along with
Bid.
i) We request you to eliminate submission
of technical documents at this stage. The
Existing conditions stipulated in the
ACBD shall prevail
RESPONSE TO THE CLARIFICATIONS SOUGHT 12
CGD BID ROUND 4
document shall be shared post winning before
signing the agreement.
ii) In case technical bid has to be submitted,
kindly share the format.
16 Technical Qualification
through parent company
The bidding entity (including any SPV or JV
proposed or formed) may not possess the
qualification but its parent company or majority
share holder qualifies. Kindly confirm that in such
cases, the bidding entity can rely on
qualification/credentials of promoter companies.
Kindly confirm that this is allowed.
Refer Clause 1.5 and 1.6 on page 12 of
the Bid Document
17 Validity of the PBG (Page 26
Clause of the Bid Document
4.5.1) / Performance Bond
related
As per the regulation 9: Grant of authorization
shall be issued to the selected entity after it
furnishes the performance bond in the form of
demand draft or pay order or bank guarantee from
any scheduled bank for the amount equal to four
times the amount of bid bond and the bank
guarantee shall be valid initially for the period of
five years and thereafter for the period of
authorization by the Board.
As per the bid document: Grant of authorization
shall be issued to the selected entity after it
furnishes the performance bond as specified in
regulation 9 of PNGRB (Authorizing entities ...)
regulations, 2008, within 15 days of such advice
by PNGRB. The validity of the PBG shall be three
years initially, extendable to the economic life of
Clause of the Bid Document 4.5.1 of
the Bid document is revised under:-
“Grant of authorization shall be issued
to the selected entity after it furnishes
a performance bond as specified in
regulation 9 of the Petroleum and
Natural Gas Regulatory Board
(Authorizing Entities to Lay, Build,
Operate or Expand City or Local
Natural Gas Distribution Networks)
Regulations, 2008, within 15 days of
such advice by PNGRB. The validity
of the Performance Bank Guarantee
shall be five years initially, extendable
to the economic life of the project in a
block of minimum three years. It shall
be the responsibility of the authorized
RESPONSE TO THE CLARIFICATIONS SOUGHT 13
CGD BID ROUND 4
the project in a block of minimum three years.
Clarify whether 5 years or 3 years?
entity to ensure that the performance
bank guarantee is renewed at least one
month before the due date every time
the performance bank guarantee
reaches the validity date till the
economic life of the project is
achieved “
As per clause 4.5.1 of Bid document, the
performance BG is to be valid initially till three
years, extendable in a block of minimum three
years whereas in the Annenexure-12 it is valid for
five years and extendable in a block of minimum
five years.
18 Encashment of Performance
Bond
In case of partial satisfaction of bid commitments
goals. What percentage of the performance bond
will be executed?
Refer Regulation 16 of the PNGRB
(Authorizing Entities to Lay, Build,
Operate or Expand City or Local
Natural Gas Distribution Networks)
Regulations, 2008
19 Number of Member to be
considered per Household
As census data provide total population figures, it
is requested to kindly clarify regarding the number
of member to be considered per household.
Census data of Government of India
provides data on number of household
details.
20 Submission of FR Earlier bidding rounds required the entity to
submit detailed feasibility report (DFR) which
shall result in minimum 6% IRR. It is requested to
kindly clarify, whether entity has to submit
feasibility report at the time of submission of bid
or any latter stage.
Refer Clause 4 of the Declaration
contained under Schedule C of the
PNGRB (Authorizing Entities to Lay,
Build, Operate, or Expand City or
Local Natural Distribution Networks)
Regulations, 2008.
RESPONSE TO THE CLARIFICATIONS SOUGHT 14
CGD BID ROUND 4
Submission of DFR - May kindly clarify whether
the bidder is required to submit Detailed
Feasibility Report along with the Bid at the time of
Bid submission. If Yes, kindly provide contents of
the same.
21 Conversion Factor to be taken It is requested to kindly clarify the conversion
factor to be taken (SCM to KG and SCM to
MMBTU) for calculating Network Tariff and
Compression Charges
Following technical assumptions for
bid evaluation purpose may be taken
considering the GCV of 8500
Kcal/SCM :-
(a) 1 MMBTU ~ 29.65SCM
(b) 1 Kg ~ 1.39 SCM
22 Charge Areas related Bidder submits that the certain charge areas may
have inherent technical limitations due to the fact
that their soil quality may be inappropriate,
protected forest, hilly terrain and so on. PNGRB is
requested to revisit this clause in the tender
document, and provide for a case whether due to
technical reasons it is not possible for connect a
Charge Area. The Bidder should be provided at
least 10 years considering the factors referred to
connect all the Charge Areas.
Existing conditions stipulated in
PNGRB (Authorizing Entities to Lay,
Build, Operate, or Expand City or
Local Natural Distribution Networks)
Regulations, 2008 and the Bid
Document shall prevail.
23 Operations beyond the notified
GA
It might be possible that one of the existing
entities has extended its operation beyond the
notified GA. It may be prudent to know how does
these assets (operating/under construction) would
be evaluated, post authorization period for the new
entity in the adjoining GA.
No entity without the permission of
PNGRB can lay, build, operate or
expand its area of operation beyond
the authorised area.
RESPONSE TO THE CLARIFICATIONS SOUGHT 15
CGD BID ROUND 4
24 Discount Factor /IRR Should we discount 1st year quoted tariff and
compression charge also in order to arrive at PV of
the same?
Yes
IRR - From the bid document the lower range for
calculating Project IRR is not clear. Kindly clarify.
There is no minimum requirement of
the IRR prescribed by PNGRB in the
bid and it is for the bidding entity to
decide the same. There is no
Annexure-15 in the bid document Is it necessary to submit the Annexure 15? Is it
still a requirement to submit the Feasibility Report
with at least an 18% of pre-tax project IRR? If not
required How is justified that there is no subsidy
between marketing and distribution.
25 Rounding Off Should values be rounded off up to 2 decimal
while calculating present value in the financial
bid.
Refer Clause 2.6.2 of the Bid
Document.
26 Net Worth Related May kindly clarify that whether the Net Worth of
successful bidder in more than one Geographical
Area would be assessed based on individual GA
requirement or on cumulative basis, i.e adding up
the net worth requirement/or all the GA's.
Networth will be assessed based on
the individual GA requirement
Reference sub-regulation 5(6)(e) of Authorization
Regulations, relating to demonstration of adequate
financial strength by net worth of entity and its
promoters.
For combining net worth of the bidding entity
along with its promoters, we wish to combine the
net worth of entity with net worth of one or more
Refer Clauses 1.5 and 1.6 on page 12
of the ACBD
RESPONSE TO THE CLARIFICATIONS SOUGHT 16
CGD BID ROUND 4
levels of promoter companies upto the ultimate
parent level and furnish undertaking in the form of
comfort letters stating that their
contribution in the project shall be infused in a
phased manner as per the project financing
schedule.
Kindly confirm that this is allowed.
27 Contiguous Area BGL would be in a much better position to
develop CGD network in Ranga Reddy & Medak
GA than any other new entity. Hence it is
requested to PNGRB to merge Ranga Reddy and
Medak GA with BGL's Hyderabad GA and
exclude it from the bidding process.
No Change in the GAs under bidding
28 Bid Bond Value The bid bond amount has been linked with
population of the GA which needs review and may
be standardised at a lower sum. It is now fixed at
Rs 5.762 crs for Ranga Reddy & Medak districts.
For a successful entity, the bid bond amount can
be converted into performance bond amount.
No clarification required
29 Last Mile Connectivity
Charges/ Other Charges
As per PNGRB regulations, a CGD entity is
allowed to collect only Rs.5000/- as an interest
free refundable security deposit from Domestic
PNG customers towards last mile connectivity
charges. The actual expenses incurred on the same
are between Rs.15,000/- to Rs.20,000/ -. Hence
the CGD entity may be allowed to collect
minimum Rs.15,000/ - as security from domestic
PNG customers.
Regulation 14 of the PNGRB
(Authorizing Entities to Lay, Build,
Operate or Expand City or Local
Natural Gas Distribution Networks)
Regulations, 2008 shall prevail.
RESPONSE TO THE CLARIFICATIONS SOUGHT 17
CGD BID ROUND 4
Is it allowed to charge connection fees? (an
individual charge, different for each segment)
30 Is it allowed to charge a minimum monthly fee
different for each segment? Are they regulated or
determined under a user/CGD company
commercial relationship?
Provisions of the relevant Regulations
shall prevail
31 Permissions/Approvals from
other authorities
The implementation and operation of a CGD
network requires lots of approvals from various
agencies, such as NHAI, municipal corporations,
railways, public works department, pollution
control board, defence etc. Obtaining multiple
approvals from various civic and Governmental
agencies and Authorities in a time bound manner
is very difficult. Also Right of Use charges being
charged by Municipal bodies/other Govt agencies
are exorbitant and differ within the same city and
between various Govt agencies. PNGRB may
kindly issue specific guidelines for granting
necessary permissions within stipulated time with
reasonable ROU charges.
It is the responsibility of the
authorized entity to acquire Right of
Use, Environmental Clearance as also
other necessary clearances/approvals
under applicable laws. However,
Schedule-D issued by PNGRB may
also facilitate the authorized entity in
getting the same. Also, PNGRB is
making efforts with Central
Government and different State
Governments for Single Window
Clearance for CGD projects.
32 SPV formation Reference sub-regulation 10 of Authorization
regulations, relating to grant of authorisation and
assignment or transfer of license:
Should we be the successful bidder, we wish to
(i) get the authorisation granted to an ultimately
wholly owned subsidiary of the bidding entity;
Refer Clause 8 of the ACBD and
Regulation 10 (3) of the PNGRB
(Authorizing Entities to Lay, Build,
Operate or Expand City or Local
Natural Gas Distribution Networks)
Regulations, 2008.
RESPONSE TO THE CLARIFICATIONS SOUGHT 18
CGD BID ROUND 4
or
(ii) get the authorisation granted to a JV in which
the bidding entity is majority (>50%)
equity holder;
or
(iii) transfer or assign within first five years the
authorisation to an ultimately wholly
owned subsidiary of the bidding entity;
or
(iv) transfer or assign within first five years the
authorisation to a JV in which the bidding entity is
majority (>50%) equity holder.
Kindly confirm any or all of the above four will be
allowed as it was done in earlier rounds
33 Affiliates Two or more entities bidding for the same GA
may have same company as its shareholder.
Kindly clarify, if this will be allowed irrespective
of level of share holding by the common company.
Refer Section 2(p) of the PNGRB Act,
2006 for definition of an entity.
Further, an entity can participate only
once for a particular GA on its own or
through an unincorporated JV/
consortium. Otherwise, it shall be
treated as multiple bids and all such
multiple bids for the GA shall be
rejected. However, there are no
restrictions on two or more entities
bidding for the same GA having same
company as its shareholder.
34 Assignment to Lenders/
Creation of lien, charge or
Since the project would be partially funded via
debt, the lenders may demand step-in rights in
Provisions under Clause 7 of Schedule
D of the PNGRB (Authorizing Entities
RESPONSE TO THE CLARIFICATIONS SOUGHT 19
CGD BID ROUND 4
hypothecation of the CGD
network
event of default under the financing agreement.
Kindly confirm that such step-in rights will be
allowed to the lenders.
to Lay, Build, Operate or Expand City
or Local Natural Gas Distribution
Networks) Regulations, 2008 and the
Bid document shall prevail. Reference 'Schedule D' clause 7 of Authorization
regulations, relating to creation of lien, charge or
hypothecation of the CGD network to secure
finances for the project:
For a successful entity (including any Spy or JV
proposed or formed), at the time of raising of
funds, the lenders may require creation of a lien,
charge or hypothecation of the CGD network.
Kindly confirm that the above is allowed.
35 PNG Infrastructure If a customer (household) doesn't wish to opt for
PNG i.e. he/she does not register for PNG
connection, then would it be still obligatory on the
part of entity to put PE pipeline, metering unit and
associated facilities for that customer? Would
exclusion of such customer be counted as part of
non-achievement of targeted PNG connections to
be achieved within 5 years?
Presently, number of household
connections where physical connection
has been provided after registration not
withstanding gas supply shall be
considered.
It is suggested that in case the households do not
opt for PNG connection, then those household
numbers be reduced form the Minimum Work
Programme target for PNG Connections
36 Insistence of T4S standard Insistence of T4S standard for major portions of
the GAs notified would lead to wasteful capex.
The T4S standard notified by PNGRB envisages
that pipeline within the scope of CGD shall be laid
Provisions under Schedule 1-D of the
Petroleum and Natural Gas Regulatory
Board (Technical Standards and
Specifications including Safety
RESPONSE TO THE CLARIFICATIONS SOUGHT 20
CGD BID ROUND 4
in the city areas having high population density,
full of multi-storeyed buildings and heavy traffic
conditions etc. and accordingly highest safety
factor of Class 4 locations has been prescribed for
design of pipeline to be laid as part of CGD
network. While such conditions do not exist now
for the major portion of the GAs notified in the 4th
Round, the authorized entity is still required to
follow the T4S standard, which would inevitably
lead to wasteful Capex and consequently a
national waste.
Standards for City or Local Natural
Gas Distribution Networks)
Regulations, 2008 shall prevail.
Note:
1. Pursuant to the Petroleum and Natural Gas Regulatory Board (Authorising Entities to Lay, Build, Operate or Expand City or Local
Natural Gas Distribution Networks) Amendment Regulations, 2014, Clause 2.5 of the ACBD containing Minimum Work Programme
(MWP) and year-wise break up of targets for the GAs under 4th
round CGD bidding have been revised and are enclosed.
Revised MWP for the 4th Round GAs Annexure-1
Inch- KM of Pipeline to be
Laid
Infrastructure for PNG
Domestic Conections
1 Kerala Ernakulam 3282388 3054 814011 1099.44 40701
2 Andhra Pradesh Rangareddy+ Medak 8330029 15788 1317001 1800.00 65850
3 Andhra Pradesh Nalgonda 3488809 14082 875939 1800.00 43797
4 Andhra Pradesh Khammam 2797370 16118 754034 1800.00 37702
5 Karnatka Bengaluru (Rural + Urban) 10612474 4395 2623124 1582.20 131156
6 Maharashtra Raigarh 2634200 6846 529527 1800.00 26476
7 Maharashtra Pune 9429408 14590 1056196 1800.00 52810
8 Maharashtra Thane 11060148 8683 1029032 1800.00 51452
9 UT Daman 191173 51 50376 33.15 2519
10 UT Dadar & Nagar Haveli 343709 493 76458 320.45 3823
11 Uttar Pradesh Shahjahnpur 3006538 4475 527501 1611.00 26375
12 Madhya Pradesh Guna 1241519 6356 244401 1800.00 12220
13 Haryana Panipat 1205437 1260 235640 650.00 11782
14 Punjab Amritsar 2490656 2648 488898 953.28 24445
No. of Households Approx Area in Sq KM as
per map
Population as per
Census 2011DistrictStateS.No
Minimum Work Program as per Regulations
Revised MWP for the 4th Round GAs Annexure-2
Inch- KM of Pipeline
to be Laid End of Year 1 (20%) End of Year 2 (50%) End of Year 3 (80%) End of Year 4 (90%) End of Year 5 (100%)
1 Kerala Ernakulam 1099.44 219.89 549.72 879.55 989.50 1099.44
2 Andhra Pradesh Rangareddy+ Medak 1800.00 360.00 900.00 1440.00 1620.00 1800.00
3 Andhra Pradesh Nalgonda 1800.00 360.00 900.00 1440.00 1620.00 1800.00
4 Andhra Pradesh Khammam 1800.00 360.00 900.00 1440.00 1620.00 1800.00
5 Karnatka Bengaluru (Rural + Urban) 1582.20 316.44 791.10 1265.76 1423.98 1582.20
6 Maharashtra Raigarh 1800.00 360.00 900.00 1440.00 1620.00 1800.00
7 Maharashtra Pune 1800.00 360.00 900.00 1440.00 1620.00 1800.00
8 Maharashtra Thane 1800.00 360.00 900.00 1440.00 1620.00 1800.00
9 UT Daman 33.15 6.63 16.58 26.52 29.84 33.15
10 UT Dadar & Nagar Haveli 320.45 64.09 160.23 256.36 288.41 320.45
11 Uttar Pradesh Shahjahnpur 1611.00 322.20 805.50 1288.80 1449.90 1611.00
12 Madhya Pradesh Guna 1800.00 360.00 900.00 1440.00 1620.00 1800.00
13 Haryana Panipat 650.00 130.00 325.00 520.00 585.00 650.00
14 Punjab Amritsar 953.28 190.66 476.64 762.62 857.95 953.28
Note: The Board may consider carry forward of the target from one year to another within the period of five years
S.No State District
Year wise Break Up of targets
Revised MWP for the 4th Round GAs Annexure-3
Infrastructure for PNG
Domestic ConectionsEnd of Year 1 End of Year 2 (15%) End of Year 3 (50%) End of Year 4 (70%) End of Year 5 (100%)
1 Kerala Ernakulam 40701 - 6105 20350 28490 40701
2 Andhra Pradesh Rangareddy+ Medak 65850 - 9878 32925 46095 65850
3 Andhra Pradesh Nalgonda 43797 - 6570 21898 30658 43797
4 Andhra Pradesh Khammam 37702 - 5655 18851 26391 37702
5 Karnatka Bengaluru (Rural + Urban) 131156 - 19673 65578 91809 131156
6 Maharashtra Raigarh 26476 - 3971 13238 18533 26476
7 Maharashtra Pune 52810 - 7921 26405 36967 52810
8 Maharashtra Thane 51452 - 7718 25726 36016 51452
9 UT Daman 2519 - 378 1259 1763 2519
10 UT Dadar & Nagar Haveli 3823 - 573 1911 2676 3823
11 Uttar Pradesh Shahjahnpur 26375 - 3956 13188 18463 26375
12 Madhya Pradesh Guna 12220 - 1833 6110 8554 12220
13 Haryana Panipat 11782 - 1767 5891 8247 11782
14 Punjab Amritsar 24445 - 3667 12222 17111 24445
Note: The Board may consider carry forward of the target from one year to another within the period of five years
S.No State District
Year wise Break Up of targets
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"/
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"/
"/
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
CA-14
CA-10
CA-03
CA-08
CA-05
CA-06
CA-09
CA-02
CA-04
CA-15
CA-13
CA-01
CA-11
CA-12
CA-07
SH 99
SH70
SH79
SH100
SH97
SH 60
SH 104
SH 89
SH72
SH96
SH272
SH70
SH104
PEN
TALA
ROHA
PALI
URAN
MAHAD
MURUD
KARJAT
MHASLA
ALIBAG
PANVEL
MANGAON
KHALAPUR
POLADPUR
NERAL (CT)
SHRIVARDHAN
DHATAU (CT)
KEGAON (CT)
BIRWADI (CT)
UTEKHOL (CT)
GOREGAON (CT)
NAGOTHANA (CT)
KHOPOLI (M CL)
MATHERAN (M CL)
MOHPADA ALIAS WASAMBE (CT)AMBIVALI TARF WANKHAL (CT)
THAL
REES
CHOUL
JASAI
NAGAON
CHANJE
GAVHAN
NAVGHAR
REVDANDA
VARASOLI
ZOTIRPADA
CHENDHARE
BHUWANESHWAR
BORLI PANCHTAN
NADGAON TARF BIRWADI
74°0'0"E
74°0'0"E
73°50'0"E
73°50'0"E
73°40'0"E
73°40'0"E
73°30'0"E
73°30'0"E
73°20'0"E
73°20'0"E
73°10'0"E
73°10'0"E
73°0'0"E
73°0'0"E
72°50'0"E
72°50'0"E
72°40'0"E
72°40'0"E
72°30'0"E
72°30'0"E19°0'0"N
19°0'0"N
18°50'0"N
18°50'0"N
18°40'0"N
18°40'0"N
18°30'0"N
18°30'0"N
18°20'0"N
18°20'0"N
18°10'0"N
18°10'0"N
18°0'0"N
18°0'0"N
CA-14
CA-10
CA-03
CA-08
CA-05
CA-06
CA-09
CA-02
CA-04
CA-15
CA-13
CA-01
CA-11
CA-12
CA-07
RAIGARH DISTRICT GEOGRAPHICAL AREA
(MAHARASHTRA)
REMARKS:-
i. Landmarks are indicative in nature.ii. Each charge area is depicted in different color and is enclosed by physicalfeatures such as roads, rivers, railway tracks or administrative boundariesas shown in the map.
iii. This map is a part of 'application-cum-bid document' for theRaigarh District Geographical area.
MAP SCALE
PETROLEUM AND NATURAL GAS REGULATORY BOARD
1st Floor, World Trade Centre, Babar Road, New Delhi-110001
Map No.
Date
Map Title
PNGRB/CGD/BID/4/2013/6/GA-Raigarh District
March-2014
Raigarh District Geographical Area
LEGENDLANDMARKS
VECTORS
VILLAGE POPULATION
MAJOR TOWNS
TALUKA HEAD QUARTER
VILLAGE WITH POPULATION 5000 AND ABOVE#
"/
!.
NAVI MUMBAI GEOGRAPHICAL AREA (MGL)TO BE EXCLUDED FROM RAIGARH DISTRICTGEOGRAPHICAL AREA
NAVI MUMBAI GEOGRAPHICALAREA (MGL)TO BE EXCLUDED FROM RAIGARH DISTRICTGEOGRAPHICALAREA
GA BOUNDARY
WATER BODIES
NATIONAL HIGHWAYS
STATE HIGHWAYS
RAILWAYS
KEY MAP
NAVI MUMBAI GEOGRAPHICAL AREA (MGL)
TO BE EXCLUDED FROM RAIGARH DISTRICTGEOGRAPHICAL AREA
THANE
PUNE
SATARA
RATNAGIRI
MUMBAI
MUMBAI (SUBURBAN)
ARABIANSEA
PUNE
SATARARATNAGIRI
ARABIANSEA
MUMBAI
MUMBAI(SUBURBAN)
THANE
Morbe Lake and Dam
Bhilavle Dam
Gadeshwar Lake
HetvaneD
am
Adista Dam
(Fouji) Ambavde
Dam Lake
kal nadi
TowardsMahabaleshwar
TowardsNatunagar
Towards Va
lote
Towards Ha
rihareshwar
Towards Shirgaon
Towards Pune
TowardsPune
TowardsBhor
Towards Mh
apral
Towards Navi Mumbai
£¤NH-4B
MUMBAIPUNEEX
PRESS
WAY
£¤NH-04£¤NH-17
£¤NH-17
£¤NH-17
0 6 12 18 243Kilometers
±
Total Geographical Area (Sq KMs) No. of Charge Areas
6846 15
Charge Area Identification Taluka Name
CA-01 Uran
CA-02 Panvel
CA-03 Karjat
CA-04 Khalapur
CA-05 Pen
CA-06 Alibag
CA-07 Murud
CA-08 Roha
CA-09 Sudhagad
CA-10 Mangaon
CA-11 Tala
CA-12 Shrivardhan
CA-13 Mhasla
CA-14 Mahad
CA-15 Poladpur
Total Population within the Geographical Area as per Census 2011
22.8 Lacs (Approx.)
VERSION-1
#*
#*
#*
#*
#*
#*
#*
#*#*
#* #*
#*
#*
#*
#*
#*
#*
#*
#* #*
#*
#*
#*
#*#* #*
#*
#*
#*
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"/
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!.
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!.
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"/
"/
"/
CA-10
CA-03
CA-12
CA-02
CA-07
CA-05
CA-04
CA-06
CA-09CA-08
CA-01
CA-11
CA-13
SH73
SH76
SH 44
SH35
SH79
SH42
SH31
SH104
SH35
SH76
SH73
SH76
SH79
SH79
GAS
VATAR
KELWA
MAHIM
DANDI
DANDI
BORDI
AGASHI PELHAR
BOLINJ
MURABE
KHAIRA
SALWAD
KAINAD
UPALAT
VANGANI
WAGHOLI
SATPATI
VANGAON
SHIRGAON
SATIVALI
ASANGAON
SARAVALI
SUTRAKAR
BILALPADA
JAMBUGAON
KALAMB (N.V.)
ARNALA (N.V.)
BORIVALI TARF RAHUR
VADA
MURBAD
JAWHAR
DAHANU
MOKHADA
PALGHAR
TALASARI
SHAHAPUR
VIKRAMGAD
WALIV (CT)
MANOR (CT)
KATKAR (CT)
PADAGHA (CT)
VASHIND (CT)
VIRAR (M CL)
TARAPUR (CT)
KOPHARAD (CT)
GOKHIVARE (CT)
CHINCHANI (CT)
NALASOPARA (M CL)
KASARA BUDRUK (CT)
NAVGHAR-MANIKPUR (M CL)
UMBAR PADA NANDADE (CT)
73°50'0"E
73°50'0"E
73°40'0"E
73°40'0"E
73°30'0"E
73°30'0"E
73°20'0"E
73°20'0"E
73°10'0"E
73°10'0"E
73°0'0"E
73°0'0"E
72°50'0"E
72°50'0"E
72°40'0"E
72°40'0"E
72°30'0"E
72°30'0"E
74°0'0"E
20°10'0"N
20°10'0"N
20°0'0"N
20°0'0"N
19°50'0"N
19°50'0"N
19°40'0"N
19°40'0"N
19°30'0"N
19°30'0"N
19°20'0"N
19°20'0"N
19°10'0"N
19°10'0"N
19°0'0"N
19°0'0"N
NAVI MUMBAI GEOGRAPHICAL AREA (MGL)TO BE EXCLUDED FROM THANE DISTRICTGEOGRAPHICAL AREA
CA-10
CA-03
CA-12
CA-02
CA-07
CA-05
CA-04
CA-09CA-08
CA-06
CA-01
CA-11
CA-13
THANE DISTRICT GEOGRAPHICAL AREA
(MAHARASHTRA)
REMARKS:-
i. Landmarks are indicative in nature.ii. Each charge area is depicted in different color and is enclosed by physicalfeatures such as roads, rivers, railway tracks or administrative boundariesas shown in the map.
iii. This map is a part of 'application-cum-bid document' for theThane District Geographical area.
MAP SCALE
PETROLEUM AND NATURAL GAS REGULATORY BOARD
1st Floor, World Trade Centre, Babar Road, New Delhi-110001
Map No.
Date
Map Title
PNGRB/CGD/BID/4/2013/8/GA-Thane District
March-2014
Thane District Geographical Area
LEGENDLANDMARKS
VECTORS
VILLAGE POPULATION
MAJOR TOWNS
TALUKA HEAD QUARTER
VILLAGE WITH POPULATION 5000 AND ABOVE#
"/
!.
NAVI MUMBAI GEOGRAPHICALAREA (MGL)TO BE EXCLUDED FROM THANE DISTRICTGEOGRAPHICALAREA
GA BOUNDARY
WATER BODIES
NATIONAL HIGHWAYS
STATE HIGHWAYS
RAILWAYS
KEY MAP
MUMBAI
RAIGARH
PUNE
AHMADNAGAR
NASHIK
VALSAD
ARABIAN SEA
£¤NH-08
£¤NH-0
8
£¤NH-08
£¤NH-08
£¤NH-03
£¤NH-03
£¤NH-03
£¤NH-03
TOWARDS BHILAD
TOWARDS AMBOLI
TOWARDS IGATPURI
TOWARDS SHINGANWADI
TOWARDS KHUBI
TOWARDSKALAMB
TOWARDSBORIVALI
NAVI MUMBAI GEOGRAPHICAL AREA (MGL)TO BE EXCLUDED FROM THANE DISTRICTGEOGRAPHICAL AREA
NASHIK
VALSAD
AHMADNAGAR
PUNE
RAIGARHMUMBAI
ARABIAN SEA
TOWARDSBHIWANDI
TOWARDSBHIWANDI
TOWARD
S KALYAN
-DOMBIVA
LI
0 7 14 21 283.5Kilometers
£¤NH-222MUMBAI SUBURBAN
DADRAAND NAGAR HAVELIDADRAAND NAGAR HAVELI
£¤NH-222
VERSION-1
Total Geographical Area (Sq KMs) No. of Charge Areas
8683 15
Charge Area Identification Taluka Name
CA-01 Talasari
CA-02 Dahanu
CA-03 Palghar
CA-04 Vikramgad
CA-05 Jawhar
CA-06 Mokhada
CA-07 Vada
CA-08 Vasai
CA-09 Bhiwandi
CA-10 Shahapur
CA-11 Kalyan
CA-12 Murbad
CA-13 Ambarnath
Total Population within the Geographical Area as per Census 2011
45 Lacs (Approx.)