IndianOil, Adani in Gas distribution JV
IndianOil and Adani Energy Ltd are forming a new joint venture company for
setting up city gas distribution (CGD) projects in various cities, including
Chandigarh, Allahabad and Ghaziabad.
The joint venture company will supply compressed natural gas (CNG) as a fuel
to automobiles and piped natural gas to households and industrial consumers.
The equity capital of this JV will be Rs. 440 crore and the two companies
will infuse Rs. 220 crore each in line with their equity contribution of 50
per cent each.
Confirming the move, a senior IndianOil official said, "We are seeking our
board approval on Monday for subscribing Rs. 220 crore as our equity share
in this JV Company."
The company will initially develop the CGD networks in three cities where
the consortium of IndianOil and Adani Energy has been successful.
The JV Company will also take over the ongoing city gas distribution
projects being developed by Adani Energy at Faridabad, Noida, and Khurja.
The company will also bid for future CGD projects.
IndanOil already has a JV company with GAIL India - Green Gas Ltd for
setting up CGD projects in Lucknow and Agra. Adani Energy has secured rights
from various state governments to set up city gas distribution networks at
Vadodara and Ahmedabad in Gujarat and in some cities in Uttar Pradesh,
Haryana and Rajasthan.
Adani Energy has completed the Faridabad city gas project in Haryana and is
also developing a similar project at Khurja in Bulandshahr in Uttar Pradesh.
Adani Energy's city gas project in Noida is under review by the Supreme
Court.
By Anupama Airy, Hindustan Times, New Delhi, 30 November 2009
