Ad Here  
Chennai and Kolkata miss opportunity to grow as Delhi and Mumbai Roaring Ro-Ro facility Quality silica from Neyveli A C Muthiah – his munificent bequeaths to science An enemy’s enemy is a friend Lesson from Chandrababu Naidu Tatas moving out of urea production... More Shakti to resource mobilisation... The Ports’ Pasha expands into Tamil Nadu Robber barons everywhere When online building permits work…. The nuclear option Align crops to agro climate endowments… ONGC at KG Basin Moily’s bold thrust Auto components surge… Alexa – Talking Wikipedia Modi storms Silicon Valley Bihar – Nitish Kumar adopts the Lalu model Cutting the nose to spite the face Tribute – M V Murugappan EEC at the National Media Centre More Shakthi to Das’ elbow Delhi is distant… Telangana in top gear… Adapt Vajpayee dinner diplomacy Bihar elections - the Rajaji formula worked Welcome changes that testify to Jayalalithaa’s return to health Silver Years of Madras Musings Solar, solar everywhere … Fortune 500 review When nations steal growth from one another… Noble nonagenarians... Streamlining mandatory third party cover Not just in-laws (and outlaws); they’ve renowned academics at the helm! Readers' Mail Gas is the way forward The star of Spencers is no more Contrarian cousins Pharma – overdose of copying Marketing expert Balagopal is no more Welcome focus on core competence Permanent secretariat for TN GIM Medical costs hit the roof... China invests in India CRS, a jewel among managers, is no more. Valli, they are more marginalised Shanti and Sadhana through Music A rich pool of talent not utilised…. Parliament in paralysis... Adharma of opposition politics A professional at the helm of IRDA... London, London Narayan CIPET hqrs to stay at Guindy – for the present? Fuel for thought F C Kohli - his concerns all embracing PC’s preference for professionals GM Technology at last! Convulsions in The Hindu Build close rapport with business leaders Strengthen the base... Come elections, come advertisements... When TN politicians can emulate Kerala's Scientists urged to take up farmer-oriented research Computation of GDP – conundrums continue EVM is tamper-proof Odisha: spectacular win by Naveen Patnaik Making ‘my Amaravati’... MHC should not return to its old indisciplined ways S Ramanathan – a versatile musician, musicologist The ‘Ayyo-yes’ is no more Music happens Naidu’s return augurs well for Seemandhra West Bengal: mindless malignancy Multi-faceted Venkat Don’t seem to feel the pulse… Godspeed, Chief Minister JJ GNS - 100: our first subscriber Intellectual of rare qualities Building loyalty through the stomach Breaththrough in malaria control B H Kothari - a tribute Waning interest in public discussions… Gay abandon in pricing Tatas moving out of urea production... CII projects higher growth… Delhi is distant The few handicaps... Editor's Notes Welcome GST Padma Bhushan for A Ramakrishna Recognition to role of NBFCs.... Colour-Chem’s colourful KRVS Online not in line with brick and mortar businesses... He saved millions from starvation... Tihar, Puzhal not different from Parappana Agrahara Tough task taking states together A proud Madrasi All eyes on Sankara Nethralaya Return to king coal for urea... Naidu will soon build a new Hyderabad Russi Mody – a tribute …and of a popular trade leader More heat than light Maximising the micro pricing … Delhi Chalo... The brown list of Venkitaramanan Delhi returns to BJP Cleaning Ganga – relocate tanneries and install electric crematoria New IT products of Ramco in the pipeline… Lalu’s envy, India’s pride Discoms deserve better… Why land prices zoom in TN? Airlines in India: cost and space When Ratan Tata visited SRM R Sridhar steps down as CEO of Shriram Capital IAS invades NDDB... Quality education through the PPP mode Funding the un-funded Should we change the official year? Air Asia India will set new benchmarks for budget travel Insurance companies bleeding, yet no decision on increasing FDI limit! Editor's Says For whom the MIDS bell tolls? How Air-India loses customs... He continues the focus on social amelioration Poor representation for Kerala and TN in Cabinet No engine for this car Sri Lanka votes for change Fall in crude prices help in oil sector reform CSR and CMI: promise of another Srinivasan Ramanujan... Kulandai was a giant Increasing non co-operation of state leaders Tribute Shaming of Tamils by Tamil farmers at Delhi Limit foreign borrowings to hi-tech, export potential projects... Revive development banks... A yen for wastage… Of course, Gujarat is vibrant When the President was rendered homeless… Tribute – Manikam Ramaswami Road development slows down TN accounts for the largest recruits by the IT sector Haul over the coal Infrastructure funding – lessons learnt When small is no larger beautiful.. Eternal support for capitalisation of PS banks Nuclear power at the nucleus Rahman at CIC Where is Rajaji? IPL - no surprise this scam There was flood of milk. Reason: no milk commissioner! A more liberated TN… The why of tax incentives A welcome initiative by the judiciary SoA @ 80 Remembering Indira Sivasailam... A friendly business group Kudos to NDTV... The Gulf aviation boom Modi and the lady The sea- saw battle continues... An inexplicable neglect Preserving for the future TN-leverage strength of BHEL, NLC... Wanted: a second airport for Chennai Revving up the manufacturing sector Paytm karo... For whom the bell tolls? Focus on quality of power - its only around 170-180V The balancing act A Grand Finale for SN’s MS centenary at the US… Varuna (rain) in 2015; Vaayu (air) in 2016. Chennai devastated The rise and rise of KCP Inflation: are we emulating Argentina and Brazil? TELANGANA at last…BUT No Maha Koottani in TN... Boy, can you beat these? Fortune for Indian Airlines Measuring roof tops in terms of KW/MW Land reclamation from sea appears cheaper! Secularism and anti-Hinduism Sweeter prospects for sugar Cement prices continue to rise… Mu Sigma – is no more Like Hinduism: many paths to reach God... L&T: focus on infrastructure and more infrastructure… Diamond jubilee of Egmore Samskrt School A glass full of corruption The ‘Jayanthi Tax.’ Muffled voices for merit… TIAM turns a full cycle This scant respect for Law An informal presentation - analytical, forward locking... Whistle-Stop Tour of Raghuram Rajan Rs.1600 crore paper board plant of TNPL Banning booze... Sweet news for TN sugar mills Shale gas and its shallow future No mega rail project for Tamil Nadu TN – agglomerate land holdings without alienating ownership Reliance’s TV – 18 ready to launch Tamil News Channel Demise of a media baron... Tribute – UCAL Selvan… Dr C Rangarajan returns to Chennai The power-full Hindujas Wise Presidents Mersal magnified Excel Generators provide the vital back-up L&T- the specialty of special purpose vehicles Protest masters... Poor quality of university VCs Solar thermal shines… Polls and promises TGS- The king storyteller Things happen by accident and not by design... Engineering seats go abegging to the lack of interest on the part of these to focus on original research. This despite the much lower costs of such research in India. The industry which thrived on the protection of a closed economy and the advantage of a vast domestic market, has failed to organise its evolution on healthy lines Shipping woes of Chennai companies The Swadeshi Trump Which side are you, Montek? The Jan Dhan bonanza Small units prefers to remain small... The rise and fall of Annamalai University Why this malaise in medical education? Towards speedy justice Welcome thrust on trade in Modi’s foreign visits... Kinetic Karnataka Liberal imports idling indigenous capacities WTO Meet: resolved to meet again Five star activism stalls development activity Tax agriculture More tributes to GR S V Raju – a ‘good’ true liberal Where a state respects its litterateurs… Plummeting profits of PSBs A Grand Finale for SN’s MS centenary at the US… A think tank for Chennai Make standards certification mandatory... Vibrant Gujarat IPL type auction for VCs? Put expensive assets created to use... PPP mode for upgrading Corporation Hospitals Another Indian music maestro at the UN
Gas is the way forward

IE has been pointing to Tamil Nadu’s total unconcern  over utilising the enormous potential of natural gas. For close to 30 years, IE has been pointing to the prosperity, especially of Gujarat and Maharashtra, built on the effective utilisation of natural gas/LPG. Apart from utilising a large portion of natural gas produced both on land and offshore at the Bombay High, these states have also created the infrastructure for importing large quantities of LNG. Look at the LNG terminals existing as on 31 March 2016: 

At Dahej in Gujarat the terminal has capacity for 10 mmtpa being increased to 15 mmtpa during the current year. 

At Hazira again in Gujarat, for 5 mmtpa.

At Dabhol in Maharashtra, for 1.692 mmtpa in phase 1 to be increased to 5 mmtpa.

Kochi built for a capacity of 5 mmtpa, but utilises a small fraction. 

In Gujarat large capacity fertiliser and power plants use gas as a feedstock effectively; a vast range of industries including steel, petrochemicals and chemicals widely use gas as also for transportation and as domestic fuel. Over a hundred units concentrated in and around Rajkot that produce ceramic tiles and large capacity glass units are based on gas. 

Look at the concentration of use by the three prosperous states:

1) As on 1 April 2016, of the total number of 1081 compressed natural gas stations (CNG), Gujarat accounted for 377, New Delhi for 340 and Maharashtra for 225 - close to 87 per cent by these three states. 

2) Of the total PNG connections of 3,287,875, Gujarat accounted for 1,554,525, Maharashtra for 924,042 and Delhi 669,265 - close to 98 per cent. 

3) Of the CNG vehicles that totalled 2,557,895, Gujarat had 864,735, New Delhi 823,298 and Maharashtra 567,785- close to 88 per cent.  

While Haryana, Andhra Pradesh, Telangana, Gujarat, Madhya Pradesh, Rajasthan, Tripura, West Bengal and Uttar Pradesh find a place in the use of natural gas, Tamil Nadu is nowhere in this. During April-September of 2016, total consumption was provisionally estimated at 27.91 bn. cubic metres with roughly 46 per cent met by imports;  this has registered an increase with liberal imports. Of this the share of Tamil Nadu is limited to a small quantum of LPG used as a domestic fuel. 

The saddest part of it relates to the state leadership blocking the construction of the gas pipeline that would facilitate use of gas imported at the Kochi terminal. The AIADMK government blocked the plan of GAIL on opposition from an estimated 5500 farmers for laying the pipeline through their fields; contrast this with the benefit to the 170 lakh population of the seven districts! Long litigation through the Madras High Court and the Supreme Court, the state blocked construction of the pipeline; the Courts ultimately rejected the appeals of the state government. Sadly, neither the industry nor the larger sections of public who would benefit immensely by the availability of this elegant raw material, have been concerned with this. For nearly a year, the state keeps to its rigid stance of its right - to shoot itself on its foot!

Look at the massive plans of the Union government to complete the national gas grid which received a set back by the Reliance Industries resiling on its original promise to construct pipelines from AP to Tamil Nadu and West Bengal and thence to UP. Minister of State for Petroleum and Natural Gas, Dharmendra Pradhan, outlined at the Economic Editors’ Conference the Urja Ganga Project designed to take gas to West Bengal, Jharkhand, Bihar, Odisha and UP. It will feed the two fertilizer plants at Barauni and Sindri which are sick. A 1000 km Dhamra-Bokaro pipeline is to be constructed at a cost of Rs 6000 crore. IOC and GAIL will jointly set up an LNG terminal at Dhamra. A massive fertilizer plant at Thalcher in Odisha to be jointly set up by a number of PSUs will also be fed by this pipeline. 

And Tamil Nadu does not seem to have any qualm about keeping the once prosperous fertilizer plants of Madras Fertilizers and SPIC sick for want of gas as a feedstock! 

Reported On :
Sector :
IE, the business magazine from south was launched in 1968 and pioneered business journalism in south. Through the 45 years IE has been focusing on well-presented and well-researched articles. When giants in the industry stumbled to keep pace with the digital revolution, IE stayed affixed embracing technology.
Read more
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
S-15, Industrial Estate,
Chennai - 600 032.
PHONE: +91 44 22501236