GSPC on the prowl for CGD acquisition targets
GSPC has the largest CGD network in India but Narendra Modi's favourite company wants to spread its tentacles further.
GSPC swallowed BG's south Gujarat gas retailer Gujarat Gas last year and now wants to buy GAIL's 25% stake in Vadodara Gas Company (VGCL), a JV with the Vadodara Municipal Corporation (25%). “GSPC would like to buy GAIL's entire stake at a mutually agreed price,” wrote GSPC managing director Tapan Ray to GAIL chairman BC Tripathi, on June 16.
Ray tells Tripathi that GSPC companies GSPC Gas, Gujarat Gas and BPCL joint venture Sabarmati Gas supply over 10m cm/d of piped gas to more than 1m homes and 10,000 factories and businesses across the state, and operate 250 CNG stations. “Now GSPC wants to take additional geographical areas,” adds Ray.
Hardly a year old, the JV between VMC and GAIL was signed on July 13, 2013. “When GSPC took over Gujarat Gas, I knew they would go after Vadodara next," adds a GAIL officer.
"And I was right. GSPC will swallow up all the gas retailers in Gujarat!” Early this year, VGCL began laying 200-km of steel pipeline with six to 10-inch diameters and 700-km of plastic pipeline.
VGCL supplies up to 100,000 cm/d of piped gas to 77,000 homes and 3000 businesses through a 750-km plastic pipeline network.