Megha Engineering new CGD business player
For once the PNGRB and oil ministry seem to be doing something right: broadening the appeal of the gas retail sector.
After Delhi-based timber importer Mahesh Resources, Hyderabad-based EPC contractor Megha Engineering & Infrastructure is the latest entrant to the sector, winning three cities in CGD-V. Megha offered the highest bank guarantee of Rs75 lakh ($118,000) for Krishna in Andhra Pradesh during a 'tie-breaker' on July 2.
Same story for Belgaum and Tumkur in Karnataka on July 3, where it offered Rs1.4cr ($2.2m) and Rs1cr ($1.6m). A company source says Megha expects PNGRB authorisation soon and that the group is "diversifying" into gas retail from its core EPC business for the power, hydrocarbons and other sectors.
"We're carrying out seven onshore projects for ONGC," he says. "We're more competent than our (gas retail) competitors.
Our expertise is in pipeline laying and we also manufacture metering stations so won't need to subcontract these items while setting up gas networks." Megha was attracted to bid in this round because the government now says domestic gas at APM (regulated) prices is available for households and as CNG unlike in the past. In earlier rounds bidders had to commit to laying 1800-inch km of steel pipeline within five years but this was changed in CGD-V to steel and plastic pipelines, a decision Megha welcomes.