New Delhi, Jul 10: The Reliance-BP joint venture today bid for the license to retail gas in 15 cities while Indraprastha Gas Ltd put in bids for 13 cities. Bidding for the biggest city gas distribution licensing round, offering 86 permits for selling CNG and piped cooking gas in 174 districts in 22 states and union territories, close this evening.
India Gas Solutions Pvt Ltd — the 50:50 JV of UK’s BP Plc and Reliance Industries, is making its maiden foray in city gas distribution as it put in the bid for 15 cities, sources said.
IGL, which retails CNG in the national capital region, is putting in bids for 13 cities, they said.
Essel Infraprojects Ltd has put in a total of seven bids.
As many as 86 geographical areas (GAs), made by clubbing adjacent districts, are on offer in the 9th city gas distribution (CGD) bidding round.
The GAs cover 24 percent of the country’s area and 29 percent of its population.
The round is likely to attract investments of Rs 70,000 crore, according to the Petroleum and Natural Gas Regulatory Board (PNGRB).
The government is targeting to raise the share of natural gas in primary energy basket to 15 percent from 6 percent at present, within a few years.
The bid round is also aimed at meeting Prime Minister Narendra Modi’s target of giving piped cooking gas connection to 1 crore households, roughly triple the current size, by 2020.
The CGD licenses on offer are for Bhopal in Madhya Pradesh; Ahmednagar in Maharashtra; Ludhiana and Jalandhar in Punjab; Barmer, Alwar and Kota in Rajasthan; Coimbatore and Salem in Tamil Nadu; Allahabad, Faizabad, Amethi and Rai Bareli in Uttar Pradesh; Dehradun in Uttarakhand and Burdwan in West Bengal.
Prior to the 9th round, 91 GAs were awarded to firms like Indraprastha Gas Ltd and GAIL Gas Ltd, which are serving 240 million population, 42 lakh domestic consumers and 31 lakh CNG vehicles.
Of these, 56 GAs were awarded through bidding rounds and the rest on government nomination.
The bid round is being held on changed parameters after one paisa bids spoilt the initial auction rounds.