Adani Group initially entered the city gas sector in a joint venture with IOC, but then partnered with Total. Adani and IOC did not submit a joint bid in the most recent bidding phase.
In the latest city gas bidding round, state-owned Indian Oil Corporation (IOC) and Adani Total Gas Ltd, a joint venture of billionaire Gautam Adani’s gas business, and Total of France bid for the most licenses to sell CNG to motorists and piped cooking gas to residences.
According to bid documents made public by the sector regulator, the Petroleum and Natural Gas Regulatory Board, IOC bid for 53 of the 61 geographical areas or GAs that received bids in the 11th city gas licensing round, which closed on December 15. (PNGRB).
Adani Total Gas Ltd submitted a bid for 52 GAs.
Adani Group initially entered the city gas sector in a joint venture with IOC, but then partnered with Total. Adani and IOC did not submit a joint bid in the most recent bidding phase.
In the most recent licensing round, PNGRB awarded 65 GAs, including Jammu, Nagpur, Pathankot, and Madurai. Four general assemblies in Chhattisgarh did not receive a single bid.
Think Gas Distribution Pvt Ltd, which is funded by I Squared Capital, was the third-highest bidder, submitting proposals for 44 GAs. Bharat Petroleum Corporation Ltd (BPCL) submitted proposals for 43 GAs, while GAIL Gas Ltd (the city gas arm of state gas utility GAIL India Ltd) submitted offers for 30 regions.
Torrent Gas bid for 28 GAs, whereas Hindustan Petroleum Corporation Ltd (HPCL), offering 37. Indraprastha Gas Ltd, which sells CNG in the national capital and surrounding territories, bid for 15 GAs, Gujarat Gas for 14, and Assam Gas for 10.
With 16 bidders, the GA comprised of the districts of Baloda Bazar, Gariyaband, and Raipur in Chhattisgarh was the most sought-after license. Nagpur
PNGRB announced last week that an investment of up to Rs 80,000 crore is planned in the 61 GAs to build city gas infrastructure.
The 65 GAs given in the 11th bid round is distributed among 215 districts in 19 states and one union territory, accounting for 26% of India’s population and 33% of its land area.
Currently, the PNGRB has authorized 228 geographical zones in 27 states and UTs, comprising approximately 53% of the country’s geographical area and 70% of its population.
In the most recent city gas distribution (CGD) bidding round, the 10th CGD bidding round, 50 GAs were authorized to develop the CGD network. In the current round, 215 districts organized into 65 GAs are available. According to the PNGRB, bids were submitted for 61 GAs.
PNGRB issued permits to retail CNG to autos and piped cooking gas to domestic kitchens in 136 GAs in 2018 and 2019. This expanded the city gas network’s coverage to 406 districts and over 70% of the country’s population.
The push for city gas development is part of the government’s ambition to increase natural gas’s share of the country’s energy basket to 15% by 2030, up from 6.3 percent now.
While the 9th round, which was completed in August 2018, offered 86 GAs made up of 174 districts forbidding, the 10th round in 2019 offered 50 GAs made up of 124 districts.
