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After awarding the contracts, the government aims to expand CGD coverage in nearly 50% of the country's 640 districts and to around 50% of the Indian population. Photo: HT
New Delhi: About 400 bids were received for 86 contracts as part of the largest gas distribution concession (CGD), announced Tuesday the Regulatory Authority of Petroleum and Natural Gas (NBGRP). 86 geographical areas (AGs) proposed under the ninth call for tenders should attract investment of about Rs. 70,000 crore.The contracts provide for the supply of cooking gas and compressed natural gas (CNG) to 174 districts in 22 US and seven Union territories and comes as a backdrop to the government's National Democratic Alliance in favor of a gas-based economy.
News Agency PTI reported that Adani Group emerged as the highest bidder for 52 cities, with GAIL Gas Lt bidding for nearly 30 cities. The report adds that Indraprastha Gas Ltd. (IGL), which sells GNC in the National Capital Region, has launched tenders for 13 cities and Essel Infraprojects Ltd. has submitted a total of seven offers.
Spokespersons of Adani Group, IGL and GAIL (India) Ltd declined to comment.
"The group considered 7-8 GA, which have a strategic advantage and complement the existing activities of Essel Infra.Essel won Baghdad on turn 8 and since then he has built capacity for such projects Entering this sector was part of our commitment to building a modern and sustainable infrastructure for progressive India, "said Brajesh Singh Bhadauria, general manager of Essel Utilities.
" More than 400 offers have were received for all 86 GAs proposed the 9th round of bidding CGD.The technical offers would be open between July 12, 2018 and July 18, 2018. During the roadshows, it was announced that the entities selected would be finalized by October 2018 after technical and financial evaluation of the bids, however, the PNGRB is now trying to speed up the process, "said the regulatory council.
After awarding contracts, the government aims to expand CGD coverage in nearly 50% of the country's 640 districts and to around 50% of India's population. The government plans to connect 10 million homes to natural gas by 2020.
Analysts were excited about the answer.
"Crisil expects the 9th round to receive a better response than before because of revised government auction standards through favorable policies." including an eight-year exclusivity period (extended by two years from five years ago), tiered tariffs to discourage unsustainable bids, the elimination of additional bid obligations, and the elimination of Evaluation of the offers in a report on Tuesday.
India has DMC networks in 91 GA operated by 36 companies.With 16,500 km of pipelines in operation, 4.2 million domestic consumers and 33,000 industrial and commercial consumers, 19% of the Indian population was covered by the CGD network
"As part of the bidding process, the PNGRB organized 16 roadshows in major cities . in India and abroad in Dubai between May and June 2018. The last bidding date was July 10, 2018. "The PNGRB stated:
Gas represents about 6.2% of the energy mix India's primary against a world average of 24% .The government plans to raise this rate to 15% by 2030. The demand for gas in India is expected to be boosted by the fertilizer, oil and gas sectors. 39, electricity, urban gas distribution and steel
should attract greater interest Bidders should also favor adjacent MGAs to existing pipeline systems Increased participation of oil majors in the public sector is probably due to the government's impulse and the increased weight given to the number of new domestic connections in the call for tender criteria, adds the Crisil report
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