InvestorQ : Why is IOCL planning major investments in city gas distribution?
Arti Chavan made post

Why is IOCL planning major investments in city gas distribution?

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Rutuja Nigam answered.
4 months ago
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Indian Oil Corporation, India’s largest refiner by revenues, plans to invest over Rs.7,000 crore for setting up city gas distribution (CGD) networks. These CGD networks will be setup and developed in cities and towns where IOCL has recently secured licenses in the latest round of bidding CGD franchises. In the latest IOCL managed to corner a total of 33% of the total demand potential that was put up for bidding in the 11th round of CGD bids.

In all, IOCL managed to secure a total of 9 licenses to retail CNG to automobile stations and to supply piped cooking gas to households and to businesses. However, in terms of number of licenses, the IOCL numbers were still less than Megha Engineering which got 15 licences and Adani Total Gas which managed to secure a total of 14 licenses. IOCL will service 28% of CGD potential of 3 rounds of bidding and that remains the highest in service share.

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