You are here: Home » Companies » News
Business Standard

IOC to invest Rs 54 bn in city gas network for retailing CNG in 7 districts

IOC had in the recently concluded 9th bid round for city gas licences won permits for seven cities on its own and another nine in a joint venture with Adani Gas

Press Trust of India  |  New Delhi 

Indian Oil Corp
Photo: Reuters

State-owned Indian Oil Corp (IOC) Thursday said it will invest Rs 54.63 billion in setting up network for retailing to automobiles and piped to households in seven districts.

had in the recently concluded 9th bid round for city gas licences won permits for seven cities on its own and another nine in a joint venture with

The company, in a regulatory filing, said its board in a meeting Wednesday approved investments in seven cities it has won on its own.

"has won the Bidding for implementation of (CGD) for 7 Geographical Areas viz Coimbatore district, Salem district (in Tamil Nadu), Bokaro district (in Jharkhand), Rewa district (in Madhya Pradesh), Aurangabad district (in Maharashtra), Guna district (in Madhya Pradesh) and Jagtial district (in Telangana).
 

"The Board has approved the estimated total capital investment of Rs 54.63 billion on the implementation of the CGD projects. The investment in CGD business will help to expand and consolidate its gas business," it said.

The company, however, did not specify the investments to be made in the nine cities it had won in the joint venture with Adani.

IOC said its board also approved a Rs 5.20 billion investment for production of ethanol using LanzaTech gas fermentation technology at Panipat refinery in Haryana.

The proposed ethanol plant is designed to produce 33.5-kilotonnes per annum of anhydrous ethanol for use in automotive fuel. "The project has the potential of greenhouse gas reduction required to limit global climate change," it said.

The board approved "installation of facilities for production of ethanol from PSA Off Gas of (HGU) at Panipat refinery using gas fermentation technology of LanzaTech USA at an estimated cost of Rs 5.20 billion," it said.

The board also approved a Rs 13.32 billion investment in laying a pipeline from Paradip in Odisha to Haldia in West Bengal.

The Paradip-Somnathpur-Haldia pipeline "would enable placement of products from Paradip Refinery, Odisha to Somnathpur, Odisha for meeting the local demand as well as to Haldia, West Bengal for onward movement through other pipelines," the company said.

First Published: Thu, October 11 2018. 17:15 IST
RECOMMENDED FOR YOU