NEW DELHI: Indian Oil Corp, the nation's largest oil company, plans to invest Rs 20,000 crore in city gas distribution projects in next 5-8 years as it bets big on gas business to complement its traditional oil refining and marketing business, its chairman Sanjiv Singh said today.
The firm, which owns a third of India's oil refining capacity and has 44 per cent market share of fuel business, sees compressed natural gas (CNG) replacing a some of the petrol and diesel consumed in vehicles today and LPG getting replaced by piped cooking gas in households. It wants to be in these businesses to maintain its market leadership position.
IOC, which among all PSUs bid most aggressively in the latest city gas distribution (CGD) licences, is hoping to net licences to retail CNG to automobiles and piped natural gas to households and industries in about 20 cities, he told reporters here.
These will be in addition to nearly 10 licences it already has.
"We put in bids for 57 out of the 86 Geographical Areas (or cities) put on offer in the 9th CGD bid round. Out of this, we expect to net 20 GAs, plus or minus one or two," he said.
Singh said the investment in these 20 GAs would be at least Rs 20,000 crore spread over five to eight years.
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