New Delhi: Indian Oil has secured nearly 33 percent of the demand potential in the recently concluded 11th round of CGD bidding by the Petroleum & Natural Gas Regulatory Board (PNGRB). "The nearest competing bidder was left with less than 20 percent of the demand potential in the bidding round in which the oil major bagged nine out of the 15 high potential GAs (Geographical Areas). With this substantial win in the 11th bidding round, Indian Oil and its associates would service almost 28 percent of the combined CGD potential in the 3 rounds of bidding till now, which is far ahead of the next major player," said Indian Oil in an official statement.
Indian Oil's recently acquired GAs include major districts like Jammu, Pathankot, Sikar, Jalgaon, Guntur (Amravati), Tuticorin, Tirunelveli, Kanyakumari, Madurai, Dharmapuri and Haldia (East Mednipore). These districts contain high demand customers across the industry: commercial-domestic spectrum for PNG (Piped Natural Gas) and CNG (Compressed Natural Gas). Indian Oil plans to invest over Rs 7,000 crore in these new CGD projects, over and above the Rs 20,000 crore already planned for its CGD vertical.
Speaking on the occasion, Indian Oil's Chairman Shrikant Madhav Vaidya remarked, "Indian Oil has a proud legacy of always aligning its growth agenda with national priorities. And our concerted efforts to expand the gas business across the length and breadth of the country reflects our commitment to realise the government's vision of raising the share of natural gas to 15 percent. 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 (BT) between now and 2030."
Reflecting on the latest developments, Vaidya said, "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. And with this, Indian Oil is poised to emerge as a dominant player in the Indian CGD market."
After the 11th Round of CGD Bidding, Indian Oil, along with its two joint venture companies, is now present in 49 GAs and 105 districts spread across 21 states and UTs, making it one of the most significant CGD players in the country. On a standalone basis, Indian Oil will now have a presence in 26 GAs and 68 districts spread across 11 states and UTs, covering nearly 20 percent of the total CGD market potential in GAs announced recently in the three bidding rounds.
(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)