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Indian Oil to invest Rs7,000 crore in new CGD projects

On standalone basis, IndianOil will now have presence in 26 geographical areas and 68 districts spread across 11 states and union territories covering nearly 20% of the total CGD market potential in geographical areas announced recently in three bidding rounds. (MINT_PRINT)Premium
On standalone basis, IndianOil will now have presence in 26 geographical areas and 68 districts spread across 11 states and union territories covering nearly 20% of the total CGD market potential in geographical areas announced recently in three bidding rounds. (MINT_PRINT)

  • The state-run energy company announced that it has secured nearly 33% of the demand potential in the recently concluded 11th round of CGD bidding by Petroleum & Natural Gas Regulatory Board

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NEW DELHI : Indian Oil Corp. Ltd plans to invest 7,000 crore in new city gas distribution (CGD) projects, the state-run company said on Sunday, adding that it has secured nearly 33% of the demand potential in the recently-concluded eleventh CGD bidding round held by the Petroleum and Natural Gas Regulatory Board (PNGRB).

“The nearest competing bidder was left with less than 20% of the demand potential in the bidding round in which Indian Oil bagged nine out of the 15 high potential geographical areas. With this substantial win in the 11th bidding round, Indian Oil and its associates would service almost 28% of the combined CGD potential in the three rounds of bidding till now, which is far ahead of the next major player," the company said in a statement.

Indian Oil has expanded its presence in Jammu, Pathankot, Sikar, Jalgaon, Guntur (Amravati), Thoothukudi, Tirunelveli, Kanyakumari, Madurai, Dharmapuri and Haldia (East Mednipore) districts, which have high-demand customers across the industrial, commercial and domestic segments for both piped natural gas (PNG) and compressed natural gas (CNG). “Indian Oil plans to invest over 7,000 crore in these new CGD projects, over and above the 20,000 crore already planned for its CGD vertical," it added.

“Our concerted efforts to expand the gas business across the length and breadth of the country reflects our commitment to realize the government’s vision of raising the share of natural gas to 15%. Gas will play a significant role in India’s march towards a low-carbon future as part of its ‘Panchamrit’ pledge during COP-26 summit to reduce total carbon emissions by one billion tonnes from now till 2030," said Shrikant Madhav Vaidya, chairman, Indian Oil.

“With our intelligently aggressive approach in the latest CGD bidding process, we have been able to secure nine high market potential GAs that cover 26 districts spread across the country. With this, IndianOil is poised to emerge as a dominant player in the Indian CGD market." After the eleventh round of CGD bidding, the public sector energy major, and its two joint venture companies, is now present in 49 regions and 105 districts across 21 states and Union territories.

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