Days after the Union Budget 2021-22 announced the addition of 100 new city gas distribution (CGD) areas, Adani Total Gas Ltd (ATGL) has indicated that it will be bidding for these geographical areas.
ATGL had got the largest number of 15 geographical areas (GA) under the ninth and tenth rounds of CGD bidding. “ATGL is very much in the business of CGD. We have benefitted out of ninth and tenth round. As soon as the opportunity comes in the 11th and 12th round, we would certainly be evaluating this opportunity. We would certainly bid,” said Suresh P Manglani, Chief Executive Officer of ATGL.
Finance Minister Nirmala Sitharaman had said in her Budget speech on February 1 that 100 new areas will be awarded in the next three years.
With the completion of tenth CGD Bidding Round, CGD would be available in 228 GAs comprising 402 districts spread over 27 states and Union territories, covering approximately 70 percent of India’s population and 53 percent of its geographical area.
At present, Adani caters to 38 GAs, which account for 8 percent of India’s population. Of these 38 GAs, 19 are managed by ATGL and the rest are managed by Indian Oil-Adani Gas Private Limited (IOAGPL) – a 50:50 joint venture between ATGL and Indian Oil Corporation.
Addressing the media on February 3, Manglani said around 48 percent of its gas requirement is sourced from the domestic market (administered pricing mechanism) and remaining 52 percent is regasified liquefied natural gas.
“We have entered into a long-term contract of sourcing gas from ATPL, which operates Dhamra LNG terminal. It is currently sourced from Total’s portfolio,” he said.
During the third quarter of FY21, ATGL posted a 27 percent increase in net profit to Rs 145 crore, as compared to Rs 114 crore during the same period in FY20. Despite the COVID-19 pandemic, the company’s revenue from operations was also seen up by 1 percent to Rs 522 crore against Rs 519 crore during the third quarter of the previous financial year.
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