IOC Open to Tie Up with GAIL for Kolkata City Gas Distribution

Indian Oil Corporation said Monday it has not decided on the strategy for bidding under the 10th city gas distribution license but options are open for joint ventures and partnerships in other cities of West Bengal.

Kolkata, Nov 19 (PTI) Indian Oil Corporation said Monday it has not decided on the strategy for bidding under the 10th city gas distribution license but options are open for joint ventures and partnerships in other cities of West Bengal.

All options remain open. There has been no decision in this regard as of now, not even pre-bid meeting has taken place, IOC CGM (LPG) Abhijit Dey said when asked about whether the oil refiner-cum-retailer will go solo or through partners for the bidding process in February 2019.

"It may happen we may go solo, partner with anoother entity including GAIL," he said.

GAIL has an existing partnership with Greater Calcutta Gas Supply Corporation for city gas which already has a piped gas infrastructure in metropolitan area and some portions of adjoining districts of Kolkata.

The next round of bidding will happen for key cities of Kolkata, Howrah, Hoogly, North and South 24 Parganas Darjeeling, North and South Dinajpur and a few others.

However, the bidding will not intervene in the area which is already under Greater Calcutta Gas Supply Corporation. So, hypothetically, a 3-way JV could be possible with Gail being the gas supplier, GCGSC bringing the piped gas infrastructure and IOC bringing additional infrastructure and capital to offer seamless CNG stations for automotive and piped gas distribtution in city.

Officials said that in February 2019 the pictiure will be clear on the eact nature of the strategy.

(This is an unedited and auto-generated story from Syndicated News feed, LatestLY Staff may not have modified or edited the content body)

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