Gujarat Gas is aiming at setting up more than 63 CNG stations in financial year 2020, said Nitin Patil, CEO of the company, adding "we are targeting volume of 9-9.5 mmscmd in FY20".
"Last two years, we have worked steadily with a particular strategy on CNG. Last year, we added 63 CNG stations and we are thinking to do little bit more than that this year," Patil said in an interview with CNBC-TV18.
Talking about volumes, he said, “Janamashtami is a period in Gujarat when most of the industries shut down especially in Morbi area. Therefore, this time, 15 days to 3 weeks, the volume goes down but we are confident it will revert back to the same level.”
“Government of Gujarat has also initiated a CNG Sahbhagi Scheme and they are pushing for this market in other way and they have eased land requirement from 1000 square meter to about 500-550 square meter and permission process has been fastened in Gujarat now, the government has taken initiatives. So ecosystem around us has been improved and in last budget, Gujarat government allocated 1,000 crore for CNG buses. Therefore, all these will help us improve our CNG volumes and that needs us to push more CNG stations in time to come,” he added.
He said the debt stands at Rs 1,800 crore and added that the company is looking at EBITDA margin of around 13 percnet in FY20.