Oil marketing companies IOC, HPCL and BPCL have bid aggressively as their current business of retail fuel like petrol and diesel along with LPG will be affected if any other player wins the bid for city gas distribution, sources said.
More than 400 bids were received for the 86 geographical areas for gas distribution of piped natural gas (PNG) and compressed natural gas (CNG).
As many as 60 areas of the 86 identified have attracted multiple bids. The bids were called by the Petroleum Natural & Gas Regulatory Board (PNGRB).
Sources privy to bid details also highlight that ten new bidders have participated in this ninth round of City Gas distribution program.
Interestingly urban areas like Chennai in particular have received aggressive and multiple bids. The PNGRB has targeted allotment to the winners by October but now aims to allot earlier than targeted timeline.
PNGRB is expected to evaluate the bids received for 86 geographical areas between July 12-18th.
City Gas distribution for 86 geographical areas will include 174 districts in 22 states and union territories allowing licenses for selling PNG meant for cooking PNG and CNG.