Circular No. 33/2022

What this document is

State Industries Promotion Corporation of Tamil Nadu Limited Circular No. 33/2022 dated 02.06.2022 gives general guidelines for City Gas Distribution projects in SIPCOT Industrial Parks. It says the Board of SIPCOT adopted Industries (MIA.1) Department G.O. (Ms.) No. 127 dated 27.05.2020, decided to collect upfront road cut restoration charges from City Gas Distribution Companies at the rates fixed for Highways roads, and decided that track rent charges fixed and revised by Government in the Revenue and Disaster Management Department will apply.

The source text also contains an Office Order on surrender of plots in SIPCOT Industrial Complexes, Parks and Growth Centres. That Office Order says the Project Officer concerned must execute or register the surrender deed within 7 days from the date of communication of the approved draft surrender deed from Head Office.

Who it affects

This material mainly affects:

• City Gas Distribution Companies laying or maintaining gas pipelines in SIPCOT Industrial Parks.
• SIPCOT Project Officers, General Managers and other officials handling road cut permissions and plot surrender processing.
• Industrial units inside SIPCOT parks, because maintenance work must not disturb them.
• Companies using ancillary infrastructure land in SIPCOT parks.

Key charges and rules for gas pipeline works

For SIPCOT roads, the restoration charges are fixed per kilometre as follows:

• BT Roads, 20.11 lakhs
• Berms, 6.07 lakhs
• Paver Block Roads, 17.50 lakhs

Other points stated in the circular are:

• The rate for roads is inclusive of GST and centage charges.
• SIPCOT, as the road owner, will collect upfront restoration charges for road cuts from City Gas Distribution Companies.
• The road cut restoration charges are valid for a period of three financial years from 2020-2021 onwards.
• If utility shifting is involved, the cost must be met by the City Gas Distribution Company.
• If any further payment is needed because of utility shifting, SIPCOT must inform the City Gas Distribution Company within 10 days of the application.
• Once all payments are made, permission for road cut must be issued within 10 days of receipt of payment.
• Track rent charges fixed and revised from time to time by Government in the Revenue and Disaster Management Department will apply.
• Land needed for ancillary infrastructure will be allotted on lease for the number of years requested by companies, as per existing rules.
• City Gas Distribution Companies must comply with all applicable national norms.
• The fixed rates and guidelines apply to all further City Gas Distribution projects also.
• SIPCOT will not be responsible for damages found in the line already laid.
• Maintenance work should not disturb any industrial unit inside the Industrial Park.
• The company is liable for any loss or damage caused to SIPCOT property or other company property while laying or maintaining gas pipelines.

Why it matters

If you are a gas utility or an industrial park user, this material tells you the charges, timelines and responsibility rules for road cutting and pipeline work inside SIPCOT parks. If you are surrendering a SIPCOT plot, the Office Order gives a 7 day timeline for execution or registration of the surrender deed after Head Office sends the approved draft.