response to the clarifications sought 1 - pngrb

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


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.


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.


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


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



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



Expand City or Local Natural Gas


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


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).

http://www.pngrb.gov.in/


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


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


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.


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.


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


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


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


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




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


Build, Operate, or Expand City or

Local Natural Distribution Networks)

Regulations, 2008.


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


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.


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


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




Regulations, 2008 shall prevail.


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




Regulations, 2008.


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


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


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


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


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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#

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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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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.)

response to the clarifications sought 1 - pngrb

Documents