The amalgamation of Gujarat Gas Company and GSPC Gas Company, approved on Saturday, resulted in the formation of a new entity, Gujarat Gas.
Post amalgamation, Gujarat Gas emerged as India's largest city gas distribution firm, with its presence spread across 19 districts in Gujarat and Union Territory of Dadra Nagar Haveli and Thane in Maharashtra, said a company statement.
The new entity has now India's largest customer base in major user segments - 1.023 million domestic households, 2,750 industrial customers, 14,000 commercial customers, and 230 CNG stations selling 765,000 kg of compressed natural gas (CNG) a day. Also, the total daily gas sales volume has reached up to 6.5 mmscmd - the highest in the country.
Moreover, according to the entity, with this amalgamation, the newly formed company's market capitalisation stands at Rs 10,600 crore (considering closing price on National Stock Exchange as on May 15, 2015), which shows company's increased valuation and importance. The size and reach of the amalgamated company gives it a capacity to achieve competence and ability to effectively manage progressive changes in this sector.
State minister for finance, energy and petrochemicals Saurabhbhai Patel said, "Gujarat has been the leader in moving to a gas-based economy and with this amalgamation we will now help to develop city gas distribution infrastructure in other states."
"Gujarat Gas Ltd will continue to expand its reach within and outside the state to convert more and more industrial, vehicular and residential users to the environment-friendly gas from other polluting fuels," he added. As per the scheme of arrangement, amalgamation of GSPC Gas Company, Gujarat Gas Company, Gujarat Gas Financial Services and Gujarat Gas Trading Company with GSPC Distribution Networks and Restructuring of share capital of GSPC Distribution Networks was completed.
The company stated Gujarat Gas Limited was committed to reach out to every possible natural gas user in its expanded geographical area. "The size and scale of the combined entity gives it the ability to achieve efficiencies and effectively manage the transformational changes in the sector. This major gain in productivity would benefit all the key stakeholders, i.e. customers and shareholders," said the statement.
Gujarat Gas is looking to add more than 200,000 domestic connections and install more than 25 new CNG stations in the state.
