IOC, HPCL win maximum areas under tenth round of city gas bidding
A total of 12 companies – including Indian Oil Corporation (IOC), Hindustan Petroleum Corporation (HPCL), Gujarat Gas and Gail Gas — managed to get 50 Geographical Areas (GAs) that were on offer under the tenth round of city gas distribution (CGD) bidding. The round, launched on November 8, is likely to see investments to the tune of Rs 50,000 crore. Indian Oil, HPCL and a little known consortium of LNG Marketing Pte, Atlantic Gulf & Pacific Company of Manila Inc won the maximum number of nine areas each during the current round, followed by six by Gujarat Gas and four by Gail Gas. On the closing bid date of February 5, at least 225 bids were received for the 50 geographical areas that were on offer under the tenth round of city gas distribution bidding. This included 124 districts (112 complete and 12 part) across 14 states. Other companies who were successful during the round included Indraprastha Gas (three), Torrent Gas (three), Adani Gas (two) and Bharat Gas (two). Three companies — including a consortium of Consortium of Think Gas Investments and Think Gas Distribution — IndianOil Adani Gas and Rajasthan State Gas won an area each. The Petroleum and Natural Gas Regulatory Board (PNGRB) in its 88th Board meeting held on February 26 approved issuance of Letters of Intent (LoI) to the 12 successful entities, said a government statement. As per the commitment made by the various entities in the 50 areas approved for issuance of letters of intent in tenth CGD Bidding Round, 2,02,92,760 domestic PNG (piped natural gas) connections and 3,578 CNG (compressed natural gas) stations for transport sector will be installed. This will be done in a period of eight years up to March 31, 2029. At present, CGD authorisation has been given by PNGRB for 178 geographical areas covering 280 districts (263 complete and 17 part) spread over 26 States and union territories. These cover approximately 50 per cent of India’s population (as per 2011 census) and 35 per cent of its geographical area. In addition, CGD operations are being carried out in five districts, authorisation for which is either under consideration of PNGRB or is sub-judice. With the completion of the current round, CGD would be available in 228 GAs comprising 402 districts spread over 27 States and Union Territories covering approximately 70 per cent of India’s population and 53 per cent of its geographical area. Further, the entities would be authorised to supply natural gas to industrial and commercial units in their respective GAs as per the limits provided in the CGD Authorisation Regulations. The letters of intent for successful entities will be handed over in a function to be held on March 1, 2019 in New Delhi.