Reliance Gas wins rights to retail gas in three cities

Last Updated: Thursday, August 27, 2009 - 18:04

New Delhi: Reliance Gas, a unit of Mukesh
Ambani-run Reliance Industries, has won rights to retail CNG
to automobiles and pipe natural gas to households in three
cities in Andhra Pradesh and Madhya Pradesh.

Reliance beat the joint venture of Adani Energy and
Indian Oil Corp (IOC) to get city gas rights in Rajahmundry in
Andhra Pradesh, sources in oil regulator Petroleum and Natural
Gas Regulatory Board (PNGRB) said.
The company also got the rights for Yannan in Andhra
Pradesh and Shahdol in Madhya Pradesh, where it was the sole
bidder.

Sources said PNGRB has opened bids for the three cities
to mark Reliance as the favoured bidder. The regulator has,
however, not awarded Letter of Intent (LOIs) due to a case in
the Delhi High Court where its right to award city gas rights
has been challenged.

Reliance managed to get Rajahmundry by a very small
margin as the Adani-IOC joint venture made very aggressive
bid.
Adani-IOC had quoted zero pipeline tariff to bag the city
gas rights in Chandigarh and Allahabad, bids for which were
opened by PNGRB earlier this month. The regulator is yet to
open bids for Ghaziabad and Jhansi.

PNGRB, which had invited bids for city gas projects in
seven cities, had asked companies to quote only the tariffs
they will charge for transporting gas within the boundaries of
cities and left to the firms to fix the price they will charge
from consumers.

Bureau Report



First Published: Thursday, August 27, 2009 - 18:04

More from zeenews

 
comments powered by Disqus