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RIL arm may take 67% stake in KG Gas Network
Reliance Gas Corporation Ltd, a subsidiary of Reliance Industries, has been invited to acquire 67 per cent stake in the Krishna Godavari Gas Network Ltd, a special purpose vehicle carved out for gas distribution through a pipeline grid.
Reliance Gas Corporation Ltd, a subsidiary of Reliance Industries , has been invited to acquire 67 per cent stake in the Krishna Godavari Gas Network Ltd, a special purpose vehicle carved out for gas distribution through a pipeline grid.
With the restructuring of the SPV, the Reliance arm will have 67 per cent equity, Gujarat State Petroleum Corporation (GSPC), IDFC (private equity) and InCAP will have 11 per cent each. InCAP will hold stake on behalf of Andhra Pradesh Government.
Earlier, the SPV had equity holding of 26 per cent each for GSPC and InCAP and 48 per cent by IDFC (private equity). However, with no gas production in sight for this SPV, the AP Government has decided to invite Reliance into the venture.
With this restructure, the SPV, while enlisting the participation of Reliance firm, will submit bids to Petroleum and Natural Gas Regulatory Board (PNGRB) and seek nod for laying the city gas distribution network in the State.
Addressing a press conference here on Monday, the Andhra Pradesh Information Minister, Mr A. Ramnarayan Reddy, said that the State Cabinet on Monday approved 67 per cent stake for Reliance Gas in the SPV.
