New Delhi: Indian Oil Corporation (IOC) has joined Indian Energy Exchange's (IEX) Indian Gas Exchange (IGX) as a strategic investor after acquiring 4.93 percent stake. In an official statement on Wednesday, IEX said, "Indian Energy Exchange (IEX), India's premiere Energy Exchange and Indian Oil Corporation (IOC), India's largest oil refining and fuel marketing firm, are pleased to announce Indian Oil's strategic equity stakes of 4.93 percent in Indian Gas Exchange Ltd. IEX has divested 4.93 percent equity stakes to Indian Oil. IEX and NSE (National Stock Exchange) are promoters and other strategic investors in IGX include GAIL (India) Ltd, ONGC Ltd, Torrent Gas Pvt Ltd and Adani Total Gas Ltd."
Indian Oil had received a nod from its Board of Directors for stake acquisition in IGX on December 21, 2021.
Commenting on the development, Indian Oil Chairman Shrikant Madhav Vaidya said, "At Indian Oil, we acknowledge the important role Indian Gas Exchange (IGX) has to play in building a gas-based economy and also creating vibrant gas markets in the country. Indian Oil is also committed to that vision and has a presence in the complete value chain of gas marketing, from LNG terminals, pipeline network and gas retailing through the City Gas Distribution (CGD) network. Our successful bids in the 11th Round of CGD bidding is also in line with our strategy to emerge as a dominant player in Indian Gas Market. And given the synergy, our partnership with the Indian Gas Exchange is a step towards attaining our mission of ensuring the availability of gas across the nation at competitive prices. This partnership will benefit the entire gas sector as we work towards making India a gas hub."
Commenting on the development, SN Goel, Chairman and Managing Director, IEX and Director, IGX said, "We are delighted to welcome Indian Oil as a strategic partner in IGX. Indian Oil has diversified and significant presence across the oil, gas, petrochemicals, and fertilizer segments which augurs well in our joint endeavour to build the gas market in India aligned to the government's vision of accelerating the share of gas in the energy mix to 15 percent by 2030. We strongly believe that Indian Oil will bring huge value through guidance and support to our new initiative of IGX. Indian Oil with their huge expertise in gas sector will help add new products for Indian markets."
Indian Gas Exchange Ltd (IGX) is India's first automated national-level gas exchange to promote and sustain an efficient and robust gas market and to foster gas trading in the country. Indian Gas Exchange (IGX) would play an important role in facilitating the achievement of the government's target of increasing the share of natural gas in India's energy basket from the current 6.5 percent to 15 percent by 2030.
(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.)