Green shoots: City gas infrastructure will drive capex, credit demand

The last of a three-part series on credit pick-up looks at how the push for city gas is creating demand for development of overall gas infrastructure

City gas distribution (CGD), or the distribution of natural gas to consumers through a network of pipelines, is progressing by leaps and bounds. With the last two bidding rounds for CGD licences, nearly 70 per cent of the country’s population has been covered. And this is translating into credit demand for the country’s banking system.

Currently, state-run oil companies dominate India’s CGD segment, although conglomerates like the Adani Group are also stepping up their presence in it. According to industry experts, banks find it comfortable to lend to this sector owing to its strong borrower profile.

With the completion of the 10th