ADB picks up 20% in Central UP Gas Ltd

Manila-based Asian Development Bank has picked up a 20 per cent stake in Central Uttar Pradesh Gas Ltd (CUGL), a clean fuel distribution company, for Rs 12 crore.

The investment was made in accordance with the shareholders' agreement signed on November 30 by the multilateral funding agency, GAIL Ltd, Bharat Petroleum Company Ltd and other Indian financial investors to establish the company, ADB said in a statement.

CUGL will introduce clean fuel for vehicles and piped natural gas for domestic, industrial and commercial users in Kanpur.

It is constructing compressed natural gas (CNG) filling stations in Kanpur and nearby towns to service vehicles converted to use the gas and also a piped city gas distribution network.