Mumbai: Mukesh Ambani-led Reliance Industries Limited (RIL) and public sector gas transportation company Gas Authority of India Limited (GAIL) have sought licences for city gas distribution and compressed natural gas (CNG) projects in 62 cities across the country.
RIL and GAIL India, through their wholly-owned subsidiaries Reliance Gas Corporation and GAIL Gas, have submitted expressions of interest to the Petroleum and Natural Gas Regulatory Board for cities, including Hyderabad, Chennai, Kolkata, Bangalore, Jhansi and Sonepat.
Reliance Gas has given EoIs for 54 cities and GAIL Gas has shown interest in eight cities.
Except for two cities, Ghaziabad in Uttar Pradesh and Gwalior in Madhya Pradesh, there are no overlapping bids by the two companies.
Both RIL and GAIL had last year entered into an agreement for setting up of city gas distribution projects and taking up other oil and gas related activities.
Setting up gas infrastructure in these cities is expected to involve an investment of around Rs48,000 crore over the next 4-5 years.
The government is expected to issue gas distribution licences for all the 60 cities through bidding. The successful bidder will eventually get the right to lay pipeline networks and retail gas to households and vehicles in that particular city.
Anil Ambani-owned Reliance Natural Resources Limited (RNRL) had also last year submitted an application to the PNGRB for licence to set up city gas distribution projects in Delhi and National Capital Region.
Both Reliance Gas Corporation and GAIL have natural gas supply mechanism in place while the Anil Ambani-owned group that is still engaged in a legal battle with his elder brother Mukesk Ambani.