Indraprastha Gas (IGL), Indian Oil-Adani Gas combine and Hindustan Petroleum-Oil India joint venture are set to win licences to distribute gas in one city each in the latest round of auction, according to people with direct knowledge of the matter.
In the much delayed 8th round city gas bidding, licences for gas distribution in Karnal, Haryana is set to go to IGL. The licenses for Ambala-Kurukshetra, also in Haryana, would go to HPCL-Oil India, and South Goa to the joint venture between Indian Oil and Adani Gas, according to sources. Actual award of licences will take place probably a month later by when new members are likely to be appointed to the Petroleum & Natural Gas Regulatory Board (PNGRB), the downstream regulator that conducts these auctions.
PNGRB has just one member on the board at present that delays decision-making, especially with regard to awarding licences.
In the latest auction, every bidder submitted a bid of 1 paisa as network tariff, as has become the norm for years, allowing the winner to be decided by the quantum of performance guarantees submitted. IGL submitted highest performance bond of Rs 306 crore for Karnal, higher than HPCL-OIL’s Rs 203 crore. Indian Oil-Adani Gas offered Rs 403 crore performance bond for South Goa. HPCL-OIL was again in the second spot with a bid bond of Rs 324 crore.
It, however, furnished the highest performance bond of Rs 303 crore for Ambala-Kurukshetra licence, just ahead of IOC-Adani’s Rs 302.35 crore bond.
The bids for three other cities — Yanam in Puducherry, Bulandshahr and Baghpat in Uttar Pradesh — have not been opened as yet. Read more
Latest posts by The Economic Times (see all)
- SoftBank grabs a chunk in India’s wind power pie - February 16, 2019
- New IL&FS Board pushes for asset-level resolution - February 14, 2019
- UAE’s Tabreed to build India’s first district cooling system in Amaravati - February 14, 2019