Reliance Gas wins rights to retail gas in three cities

Reliance Gas wins rights to retail gas in three cities 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