Reliance Industries and GAIL India, through their wholly owned subsidiaries Reliance Gas Corporation and GAIL Gas, respectively, have submitted expressions of interest (EoI) to the Petroleum and Natural Gas Regulatory Board (PNGRB) to retail gas to households and vehicles in 60 cities including Hyderabad, Chennai, Kolkata, Bengaluru, Jhansi and Sonepat.
Reliance Gas has submitted EoIs for 54 cities, while GAIL Gas has shown interest in eight cities. Setting up the gas infrastructure in these cities will involve an investment of around Rs 48,000 crore (around $11.5 billion) over the next five years.
BS Negi, member of PNGRB, said: “Contracts for laying the pipeline network in the identified cities are likely to be awarded by December.”
According to the regulations for city gas distribution, approved by the regulatory board in March this year, licenses for all the 60 cities will now be put up for bidding.
According to sources, Indian Oil Corporation, the country’s largest crude oil refiner and marketer of petroleum products, is also planning to bid for city gas licenses.