Thu. Feb 22nd, 2024
Indian Oil Corporation (IOC)Image Source: IOCL Twitter Handle

Indian Oil Corporation (IOC), the country’s largest oil firm, announced on the weekend that it is investing Rs 7,000 crore putting up city gas distribution networks in the cities for which it has obtained a licence in the latest bidding round.

IOC secured 33 per cent of the demand potential that was up for bidding in the recently concluded 11th round of CGD bidding, covering cities from Jammu to Madurai to Haldia, the firm said.

Out of 61 geographical areas or GAs, on which bids were put on in the 11th round city gas distribution (CGD) bidding, IOC bagged 9 licenses to retail CNG to automobiles and piped cooking gas to households. Though the GAs it obtained were outdone by Megha Engineering and Infrastructures Ltd, which won 15 licences and Adani Total Gas Ltd, which secured 14, in terms of demand potential, IOC topped.

“The nearest competing bidder was left with less than 20 percent of the demand potential in the bidding round in which IOC bagged 9 out of the 15 high potential GAs,” the firm said in a statement.

“With this substantial win in the 11th bidding round, IOC and its associates would service almost 28 per cent of the combined CGD potential in the 3 rounds of bidding till now, which is far ahead of the next major player.”

IOC acquired GAs that covers major districts, such as– Jammu, Pathankot, Sikar, Jalgaon, Guntur (Amravati), Tuticorin, Tirunelveli, Kanyakumari, Madurai, Dharmapuri and Haldia (East Midnapore).

These districts have high demand customers across the industry-commercial-domestic range for PNG (Piped Natural Gas) and 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,” the statement said.

Speaking on the occasion, IOC Chairman Shrikant Madhav Vaidya praised the company for its investments that align with 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 per cent,” he said.

“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.”

Speaking about the investment, Vaidya said the “intelligently aggressive” approach of IOC in the latest CGD bidding process managed to grab nine high market potential GAs that covers 26 districts spread across India.

“And with this, IOC is poised to emerge as a dominant player in the Indian CGD market.”

Following the 11th Round of CGD bidding, IOC with its two joint venture companies accounts for 49 GAs and 105 districts spread across 21 states and UTs, thus becoming one of the most significant CGD players in the nation.

Independently, IOC will have 26 GAs and 68 Districts spread across 11 states and UTs, setting a foot in over 20 percent of the total CGD market potential in GAs announced recently concluded 3 bidding rounds.

By Harshita Sharma

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