Success for CGD-VIII as Oil India leads bidders

Vol 20, PW 12 (09 Mar 17) Midstream & Downstream

A raft of newcomers has invigorated the PNGRB's eighth retail gas licensing round with several companies competing for areas which previously received no bids in earlier rounds.

Most striking is Oil India's much-awaited entry into the sector with bids for four of the seven areas on offer, submitted by the February 23 deadline in partnership with Hindustan Petroleum: Kolhapur in southwest Maharashtra; south Goa; Ambala and Kurukshetra in Haryana; and Karnal also in Haryana. "Oil India and HPCL selected the four regions wisely," says a source.

"All these areas have good prospects." Twelve city gas retailers including three JVs are participating in this round, an impressive turn-out! Relative newcomers include Sanwariya Gas, Mathura Natural Gas, Godavari Gas, Goa Natural Gas, and KEI-RSOS Petroleum. Bulandshahr (part) in Uttar Pradesh, which received no bids in the fifth round, received three bids from Sanwariya with Mathura; IndianOil with Adani Gas; and Indraprastha Gas.

Yanam in Puducherry, which received no bids in the second round, received two bids under this round from first-timer KEI-RSOS; and Godavari, a JV between HPCL and Andhra Pradesh Gas Development Corporation. But the strongest response has been for Kolhapur, best known for producing extremely comfortable leather slippers.

Besides Oil India and HPCL, bids were also received from Mumbai-based companies Mahanagar Gas and Unison Enviro, Pune-based Maharashtra Natural Gas and BPCL.