Economy

BPCL to invest ₹10,000 crore in six new city gas networks

Bharat Petroleum Corporation Limited (BPCL) on Tuesday said it will invest ₹10,000 crore over the next five years in setting up city gas distribution networks in the cities for which it secured licences in the latest bidding round.

BPCL won licences to retail CNG to automobiles and supply piped natural gas for cooking purposes in six geographical areas or GAs bid out in the latest 11th bidding round of PNGRB.

“After announcement of results of bidding, BPCL’s committed investment in city gas distribution (CGD) network, on a standalone basis, would increase to over ₹22,000 crore for development of 23 GAs, including ₹10,000 crore for the six new GAs,” BPCL said in a stock exchange filing.

BPCL had won six GAs in 19 districts for setting up City Gas Distribution (CGD) networks, in the 11th bidding round of Petroleum and Natural Gas Regulatory (PNGRB). “The CGD footprints of BPCL, along with its JVs, will now extend to 48 GAs covering 94 districts in 18 states, across India. Currently, with presence in 63 districts, including prominent cities, BPCL along with its JVs together hold 33% market share in the CGD sector in the country,” it said.

Of the 61 GAs that received bids in the 11th round CGD bidding, Megha Engineering and Infrastructures Limited got 15 licences, Adani Total Gas Limited got 14 and State-owned Indian Oil Corporation (IOC) high potential nine GAs.

BPCL had city gas licence for 38 GAs prior to winning six in the latest bid round.


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Printable version | May 19, 2022 2:19:42 pm | https://www.thehindu.com/business/Economy/bpcl-to-invest-10000-crore-in-six-new-city-gas-networks/article38325908.ece