India Receives 400 Bids During Latest CGD Bidding Round

Indian downstream regulator Petroleum and Natural Gas Regulatory Board (PNGRB) has received more than 400 bids during the ninth city gas distribution (CGD) bidding round that closed July 10, it said the same day.

India is rolling out networks in 86 new areas covering 174 districts in 22 states/union territories. In order to expand the area covered by the city gas distribution (CGD) network, India on May 8 kicked off its biggest bidding round. As part of the bidding process, PNGRB organised 16 roadshows in major cities across India and internationally in Dubai during May-June this year. The technical bids would be opened between July 12-18, PNGRB said.

During roadshows, it was announced that the successful entities would be finalised by October after technical and financial evaluation of bids. However, PNGRB said it is now trying to expedite the process. This round is likely to attract investments of rupees 700bn ($10bn), said PNGRB, adding that the CGD sector will play a significant role in achieving the shift towards a gas-based economy, with natural gas as the next-generation, cheaper and environment friendly fossil fuel.

PNGRB did not provide details about the bids but Press Trust of India July 10 reported  that India Gas Solutions (IGS), a 50-50 gas marketing joint venture between Reliance Industries and BP, has bid for licences to retail gas in 15 Indian cities. Indraprastha Gas (IGL) has put in bids for 13 cities while Essel Infraprojects has put in a total of seven bids.