IndianOil plans to invest over Rs 7,000 Cr in new CGD Projects
IndianOil leads CGD foray garnering 33% market potential in PNGRB's 11th Round of CGD Bidding
Representational Image / Image credit: afp
New Delhi: IndianOil (Indian Oil Corporation Limited), the country's largest downstream energy major, secured nearly 33% of the demand potential in the recently concluded 11th round of CGD bidding by PNGRB (Petroleum & Natural Gas Regulatory Board). The nearest competing bidder was left with less than 20% of the demand potential in the bidding round in which IndianOil bagged 9 out of the 15 high potential GAs (Geographical Areas). With this substantial win in the 11th bidding round, IndianOil and its associates would service almost 28% of the combined CGD potential in the 3 rounds of bidding till now, which is far ahead of the next major player.
IndianOil'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) & CNG (Compressed Natural Gas). IndianOil 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, Chairman IndianOil Mr Shrikant Madhav Vaidya remarked, "IndianOil has a proud legacy of always aligning its growth agenda with the 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%. 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.”
Reflecting on the latest developments, Mr 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, IndianOil is poised to emerge as a dominant player in Indian CGD Market".
After the 11th Round of CGD Bidding, IndianOil along with its 2 JV 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 standalone basis, IndianOil will now have presence in 26 GAs and 68 Districts spread across 11 states & UT covering nearly 20% of the total CGD market potential in GAs announced recently in 3 bidding rounds.