 "IOC to invest Rs 54 bn in city gas network for retailing CNG in 7 districts")
State-owned Indian Oil Corp (IOC) Thursday said it will invest Rs 54.63 billion in setting up city gas distribution network for retailing CNG to automobiles and piped cooking gas to households in seven districts.
IOC had in the recently concluded 9th bid round for city gas licences won permits for seven cities on its own and another nine in a joint venture with Adani Gas.
The company, in a regulatory filing, said its board in a meeting Wednesday approved investments in seven cities it has won on its own.
"IOC has won the Bidding for implementation of City Gas Distribution (CGD) for 7 Geographical Areas viz Coimbatore district, Salem district (in Tamil Nadu), Bokaro district (in Jharkhand), Rewa district (in Madhya Pradesh), Aurangabad district (in Maharashtra), Guna district (in Madhya Pradesh) and Jagtial district (in Telangana).
"The Board has approved the estimated total capital investment of Rs 54.63 billion on the implementation of the CGD projects. The investment in CGD business will help IOC to expand and consolidate its gas business," it said.
The company, however, did not specify the investments to be made in the nine cities it had won in the joint venture with Adani.
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IOC said its board also approved a Rs 5.20 billion investment for production of ethanol using LanzaTech gas fermentation technology at Panipat refinery in Haryana.
The proposed ethanol plant is designed to produce 33.5-kilotonnes per annum of anhydrous ethanol for use in automotive fuel. "The project has the potential of greenhouse gas reduction required to limit global climate change," it said.
The board approved "installation of facilities for production of ethanol from PSA Off Gas of Hydrogen Generation Unit (HGU) at Panipat refinery using gas fermentation technology of LanzaTech USA at an estimated cost of Rs 5.20 billion," it said.
The board also approved a Rs 13.32 billion investment in laying a pipeline from Paradip in Odisha to Haldia in West Bengal.
The Paradip-Somnathpur-Haldia pipeline "would enable placement of products from Paradip Refinery, Odisha to Somnathpur, Odisha for meeting the local demand as well as to Haldia, West Bengal for onward movement through other pipelines," the company said.