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BPCL emerged as the highest individual bidder in the 9th round of auctions for City Gas Distribution (CGD) licenses with offers for 53 geographic areas (GA), followed by Indian Oil (37), GAIL Gas (34), Adani Gas (32) and Torrent Gas (31). BPCL became the top individual bidder in the 9th round of bidding for City Gas Distribution Licenses (CGD) with bids for 53 geographic zones (GA), followed by Indian Oil (37), GAIL Gas (34), Adani Gas (32) and Torrent Gas (31). While HPCL has submitted bids for 21 AGs, a consortium of Adani and Indian Oil has bid for 17 AGs. The Petroleum and Natural Gas Regulatory Board (PNGRB) released Wednesday the list of bidders for all GAs. The current cycle is to license 86 GA to sell compressed natural gas (CNG) and canned cooking gas.
These GA cover 174 districts in 22 states and territories of the Union, or 24% of the Indian area and 29% of the population. Other notable bidders are Gujarat Gas (21 GA), Think Gas Investments (21 GA) and Unison Enviro (20 GA). The PNGRB will now review the details of the offer and is expected to announce the winners by September. Bidders were asked to name the number of CNG stations that they will establish and the domestic kitchen gas connections that they plan to provide during the first eight years of operation. Under the new standards, the maximum weight of 50% has been badigned to the number of gas connections proposed. While 407 tenders were submitted in the current cycle, 12 AG received individual offers
The largest number of tenders were submitted for the AG including the districts of Srikakulam, Visakhapatnam and Vizianagarm in Andhra Pradesh, which has 15 takers. He is followed by Jhajjar in Haryana (14), Alwar (other than Bhiwadi) and Jaipur in Rajasthan (14), Dakshina Kannada in Karnataka (13) and Coimbatore in Tamil Nadu (13). Although more than Rs 18,000 crores have been invested so far in the activities of CGD in the country, the last round should result in investments of Rs 70,000 crore. Existing CGD operators include IGL and GAIL Gas, which serve a population of 24 crore through 42 domestic lakh connections and 31 lakh LNG vehicles.
The government aims to connect 1 crore households with piped gas by 2020, which is in line with the increase in the share of natural gas in the country's primary energy basket at 15 6% in the next few years. The ninth round of the bidding was taking place on modified parameters after an offer Paisa spoiled the first bids. Bidders were asked to indicate the number of CNG stations to be installed and the number of domestic gas connections to be provided during the first eight years of operation.
In the previous eight series, bidders rate the pipeline that transports gas within the city limits. The bidding criteria did not include the rate at which an entity would sell CNG to automobiles or natural gas piped to households using the same pipeline system, which led companies to propose a paisa as tariff for obtaining licenses. In the new guidelines, a maximum weight of 50% was badigned to the number of gas connections proposed in the eight years following the date of authorization, compared to 30% previously.
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