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