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The latest round of bidding for city gas distribution (CGD) licenses covering 50 new geographical areas was pretty aggressive, which saw incumbents such as Indraprastha Gas (IGL) and Gujarat Gas win only a few areas, while Mahanagar Gas (MGL) did not get even a single new area. However, analysts see a silver lining in this.
Those at Edelweiss Securities say these CGD firms have remained selective in bidding, and believe that incumbents have focused on maintaining current levels of return on capital employed (RoCE), which led to them being outbid by new aggressive entrants.
The optimism also stems from the outlook for
