Central U.P. Gas is planning to take up the city gas distribution project in UP. The Project involves the construction of a city gas distribution networks in and around Kanpur, India to deliver compressed natural gas (CNG) to vehicles and piped natural gas (PNG) to commercial, industrial and residential users. The Project is comprised of two main components:
1. Construction of a limited natural gas distribution network within the city and subsequent customer connections; and
2. Establishment of CNG ‘mother’ filling stations and online filling stations to service cars, buses, taxis and 2-and 3-wheelers which have been converted to CNG use.
The proposed investment to supply natural gas to urban areas will contribute directly to two strategies for achieving the ultimate objective of poverty reduction in India. First, the Project enhances economic growth by developing adequate infrastructure.
The project was given clearance in May 2005 and board approval was obtained in January 2006.
In November 2006, the project has received an loan to the tune of US$ 2.6 million towards funding the project.
Work on the project is yet to begin.