Indian Oil Corp bags city gas licenses for nine potential GAs

18 Jan 2022 CW Team

Indian Oil Corporation Limited (IOCL) has won city gas licenses for nine out of 15 high-potential geographical areas (GAs) and plans to invest Rs 7,000 crore for infrastructure development in these GAs.

The Petroleum and Natural Gas Regulatory Board (PNGRB) has sought bids for developing 65 GAs in the 11th round of bidding. It had received over 430 bids, including IOCL, the highest bidder with 53 bids. Adani, Think Gas and Hindustan Petroleum Corporation Limited (HPCL) were among other big bidders in the 11th round of bidding.

According to IOCL, the company had won bids, consisting of 33% of the demand potential of all GAs during the 11th round of bidding. The demand potential varies from one license area to another based on population and economic profile, and the companies compete in zones with more industries and vehicles.

Chairman of IOCL, Shrikant Madhav, said that the company had won bids for the latest city gas distribution (CGD) bidding in nine high-potential GAs over 26 districts. After this win, IOCL will emerge as a dominant player in the Indian CGD market.

The GAs for which IOCL won the bidding are Jammu, Pathankot, Sikar, Jalgaon, Guntur, Tuticorin, Tirunelveli, Kanyakumari, Madurai, Dharmapuri and Haldia.

After the 11th round of bidding, IOCL and its joint venture (JV) companies are present in 49 GAs across 105 districts. They would produce 28% of the combined city gas potential in the last three rounds of bidding. IOCL itself will have a presence in 26 GAs across 68 districts.

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Also read: MEIL acquires 15 city gas distribution projects in 9 states

Also read: IOCL nods Rs 3,861 cr specialty chemicals plant for Panipat refinery

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