Indian Oil Corp (IOC) to invest Rs 780 crore in setting up city gas distribution network for retailing CNG to automobiles and piped cooking gas to households in Aurangabad District.
IOC had in the recently concluded 9th bid round for city gas licenses won permits for seven cities on its own and another nine in a joint venture with Adani Gas.
The company, in a regulatory filing, said its board in a meeting Wednesday (10th Oct) approved investments in seven cities it has won on its own.
“IOC has won the Bidding for implementation of City Gas Distribution (CGD) for 7 Geographical Areas viz Coimbatore district, Salem district (in Tamil Nadu), Bokaro district (in Jharkhand), Rewa district (in Madhya Pradesh), Aurangabad district (in Maharashtra), Guna district (in Madhya Pradesh and Jagtial district (in Telangana).
“The Board has approved the estimated total capital investment of Rs 5463 crore on the implementation of the CGD projects. The investment in CGD business will help IOC to expand and consolidate its gas business,” it said.
Key Policy Enablers
► Regulatory interventions
► CNG in public transport
► Domestic gas allocation for Domestic PNG and CNG
► Designated CGD as “Public Utility”
► State governments’ commitment for facilitation of CGD networks
► GoI drive to connect 1 Crore households to PNG by 2020