The country’s largest city gas distribution (CGD) company Gujarat Gas’ plans to buy GAIL Gas’ entire stake in Vadodara Gas Ltd (VGL) has been put on a back-burner after stiff resistance from the city civic body.
GAIL Gas, a wholly-owned subsidiary of GAIL (India) Ltd, has agreed to sell its entire 50% stake to Gujarat Gas, however VMSS has opposed the move by citing a restrictive clause, said government sources.
“The proposal has been put in a cold storage now. However, we are not ruling out the possibility of revisiting the plans in near future. When GAIL Gas has agreed to sell and exit why should there be an issue for VMSS,” he added.
A senior official of VGL said the committee had not cleared the proposal. He said that the matter was between the state government and Vadodara Municipal Corporation and they were to decide upon it. Read More