Hyderabad-based engineering firm Megha Enterprises (MEIL) has won the highest bid in the latest round of auctions for City Gas Distribution (CGD) licenses. Other top winners are Adani Total as well as state-owned Indian Oil Corporation (IOC) and Bharat Petroleum Corporation (BPCL). Out of the total bids for 61 GAs in the 11th round of the CGD auction, MEIL won 15 GAs, followed by 14 GAs secured by Adani Total – a joint venture of Adani Group and French energy company Total. IOC and BPCL won nine GAs and six GAs respectively, while Navi Mumbai-based Dinesh Engineers won the bid for four GAs. However, most of the bids, a total of 23, were won by Central and State Public Sector Undertakings (PSUs). In addition to IOC and BPCL, the state government PSU Assam Gas got 3 GA, followed by Maharashtra Natural Gas (2 GAs). Apart from that, central PSUs Hindustan Petroleum Corporation (HPCL), GAIL and Indraprastha Gas (IGL) also won bids for one GA each. Successful bidders will have to build city gate stations or mother stations, lay the main pipeline and distribution pipelines and install CNG stations, read the statement by MEIL, which bid for 43 GA. Earlier, the global engineering firm had won 3 GAs (Karnataka, Andhra Pradesh and Telangana) in the 10th round of bidding for CGD. About 32 CNG stations in three states are already operational under the brand name Megha Gas. Through the construction of the CGD network, the government aims to promote natural gas such as compressed natural gas (CNG) used as a fuel for homes and industries (for domestic or industrial use) as well as for the automotive and automobile industries. . Last month, the Petroleum and Natural Gas Regulatory Board (PNGRB) said it had received more than 430 bids in the 11th round of bidding to set CGD at 61 GA. Four GAs did not receive any bids. The oil sector regulator expects the exercise to bring in over ₹ 80,000 crore in investment and job creation. PNGRB launched the 11th CGD Bidding Round in September 2021 for 215 districts (212 complete and 3 parts) and 65 GAs spread across a Union Territory covering 26% of India’s population and 33% of its area. In the 10th CGD Bidding Round in November 2018, about 50 GAs were authorized to develop the CGD network. While in the ninth round of CGD bidding (May 2018), PNGRB offered 86 GAs covering 174 districts (156 full and 18 parts) spread across 22 States and Union Territories. Currently, there are 228 GAs authorized by regulators in 27 states and union territories, covering about 53% of the country’s geographical area and 70% of its population. In the past, the regulator has conducted 8 rounds of bidding to develop CGD infrastructure which resulted in awarding 56 GAs including 29GAs, which were initiated by PNGRB and 6 government mandated GAs. As of November 2021, India had a total of 83.70 lakh PNG connections and 3,532 CNG stations on a temporary basis. The government provides cheap domestic gas to the CGD segment under the Administered Price Mechanism (APM) for local PNG and CNG categories. However, liquefied natural gas (LNG) is imported to meet the industrial and commercial PNG demand. The CNG segment consumes about 40 percent of the city’s gas distribution.
January 14, 2022