GSPC wants CGD gas monopoly in Gujarat

Vol 18, PW 10 (15 Jan 15) News in Brief
     

GSPC wants to dominate the gas retail business in Gujarat as it prepares hostile takeovers of GAIL’s 25% stake in the Vadodara Gas Company and BPCL’s 25% stake in Sabarmati Gas.

“Once Vibrant Gujarat is over,” Saurabh Patel, state energy minister, tells this report. “Our focus will be on expanding GSPC’s gas retail business.

” GSPC Gas, the gas retail arm of GSPC, is already well on its way to consolidating its stranglehold on the CGD sector in Gujarat. On January 13, GSPC released the results of a postal ballot and ‘e-vote’ conducted among shareholders with a resounding ‘yes’ vote recorded for approval of a proposal to amalgamate former BG retailer Gujarat Gas with GSPC.

A total of 437 shareholders cast 19,777,119 votes in favour (93.53%) of the amalgamation. Only 49 shareholders cast 1,368,185 votes (6.47%) against the move.

GSPC acquired Gujarat Gas in June 2013 paying BG Rs2463.80cr ($396.81m) for BG’s 65.12% stake.