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RIL-BP JV seeks licence for 15 cities, IGL 13

Gasoil News - Published on Thu, 12 Jul 2018

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PTI reported that the Reliance-BP joint venture recently bid for licence to retail gas in 15 cities while Indraprastha Gas Ltd (IGL) put in bids for 13 cities. Bidding for the biggest city gas distribution licensing round, offering 86 permits for selling CNG and piped cooking gas in 174 districts in 22 states and union territories, closes this evening.

Sources said that India Gas Solutions - the 50:50 JV of UK's BP and Reliance Industries - is making its maiden foray in city gas distribution as it put in bid for 15 cities.

They said that IGL, which retails CNG in the national capital region, is putting in bids for 13 cities.

Essel Infraprojects has put in a total of seven bids.

According to the Petroleum and Natural Gas Regulatory Board, as many as 86 geographical areas (GAs), made by clubbing adjacent districts, are on offer in the 9th city gas distribution (CGD) bidding round. The GAs cover 24 per cent of the country's area and 29 per cent of its population. The round is likely to attract investments of INR 70,000 crore.

The government is targeting to raise the share of natural gas in primary energy basket to 15 per cent from 6 per cent at present, within a few years.

The bid round is also aimed at meeting Prime Minister Narendra Modi's target of giving piped cooking gas connection to 1 crore households, roughly triple the current size, by 2020.

The CGD licences on offer are for Bhopal in Madhya Pradesh; Ahmednagar in Maharashtra; Ludhiana and Jalandhar in Punjab; Barmer, Alwar and Kota in Rajasthan; Coimbatore and Salem in Tamil Nadu; Allahabad, Faizabad, Amethi and Rai Bareli in Uttar Pradesh; Dehradun in Uttarakhand and Burdwan in West Bengal.

Prior to the 9th round, 91 GAs were awarded to firms like IGL and GAIL Gas, which are serving 240 million population, 42 lakh domestic consumers and 31 lakh CNG vehicles.

Of these, 56 GAs were awarded through bidding rounds and the rest on government nomination.

The bid round is being held on changed parameters after one paisa bids spoilt the initial auction rounds. Bidders have been asked to quote the number of CNG stations to be set up and number of domestic cooking gas connections to be given in the first eight years of operation.

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Posted By : Nanda Koijam on Thu, 12 Jul 2018
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