India to Approve Award of CGD Licences by August

Indian downstream regulator Petroleum and Natural Gas Regulatory Board (PNGRB) is expected to approve the award of city gas distribution (CGD) licences to the successful bidders by August 2018, it said July 19.

PNGRB had launched ninth CGD bidding in April for 86 areas covering 174 districts in 22 states and union territories. Technical bids were opened by PNGRB during July 12-18. A total of 406 bids have been received for the 86 areas; and 35 entities have participated in the process.

The latest bidding round has received strong response from the industry. A maximum of 15 bids have been received in respect of Srikakulam, Vishkhapatnam and Vizianagram districts in the state of Andhra Pradesh; while 14 bids each were received in respect of Jhajjar district in the state of Haryana and Alwar and Jaipur districts in the state of Rajasthan. Coimbatore district in the state of Tamil Nadu and Dakshina Kannada district in the state of Karnataka received 13 bids each, PNGRB said. According the regulator, state-owned BPCL has put in the maximum bids with bids for 53 areas.

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.