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Customised City Gas Piping Plan As Per Population Density of City, is a Must for India

News

 Delhi and Muzaffarnagar. The first has more than 1 crore people in about 1,500 sq km. The second covers twice the area and has 28 lakh people. But when it comes to laying gas pipelines, government policy doesn't seem to make allowances for these differences— bidders are expected to install networks even in areas where it doesn't make any commercial sense. 
Source:  ET

SNP Insights

Laying down pipe line for an area, with less dense population, with more geographical coverage would be of dwindling business sense for the investor, as capital investment will be substantially high while realisation of revenue will be significantly lower for the same time. So in order to attract the bidders for pipeline development, Government should categorize state as per their, population density & come out with due allowances & VGF mechanism, for less populated area, to achieve PM’s plan of ‘1 Crore piping connection by 2019’ a success.

Source: SNP Infra Research