New Delhi: State-run Indian Oil Corporation's (IOC) Board of Directors has approved the investment of Rs 7,282 crore for the development of City Gas Distribution (CGD) network in nine geographical areas (GAs) awarded to the oil PSU in the 11th CGD bidding round, Indian Oil said in a regulatory filing to the stock exchanges on Thursday. "… we would like to inform that the Board of Indian Oil at its meeting held on 16th March 2022 has accorded investment approval of Rs 7,282 crore for development of City Gas Distribution (CGD) network in 9 Geographical areas (GAs) awarded to the Company by PNGRB in the 11" Round of CGD bidding."
"With these nine Geographical Areas under Indian Oil's fold, the Company will now have its presence in 26 number of Geographical Areas on its own and 23 number of Geographical Areas through its Joint Venture companies. After 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 major CGD players in the country," said the regulatory filing.
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.
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).