New Delhi: Anil Ambani's group company Reliance Fuel Resources Ltd (RFRL) will apply for City Gas Distribution (CGD) licence for supplying natural gas to industrial, commercial, domestic and automobile sectors.
While Reliance Gas Pipelines Ltd, a subsidiary of RIL, plans to set up CGD networks in Chennai, Vijaywada, Kakinada, Visakhapatnam, Nalgonda, Hyderabad, Pune, Sholapur and Thane to supply natural gas through pipes to households.
Moreover, the network would cater to the commercial users and also for automobiles in metros.
The official sources said that RFRL formally put in an application for CGD licenses in Delhi and Mumbai last week.
However, the company spokesperson did not immediately comment on the proposal.
Currently, Indraprastha Gas Ltd (IGL) retails gas in Delhi and Mahanagar Gas Ltd (MGL) is involved in sale of gas in Mumbai.
Sources said the application contends that as the market share of both these companies was small - IGL commands just 3.5 per cent of the Delhi household gas connection market, while MGL has 10 per cent of the Mumbai market - there was scope for RFRL to operate.
Moreover, the move would lead to greater competition and benefit consumers, sources said, quoting RFRL's application.
RIL's Rs 5,000 crore plan involves supplying gas sourced from its gigantic field in Bay of Bengal to:
- Visakahpatnam (1 million standard cubic meters)
- Kakinada (0.4 mmscmd)
- Vijaiwada (0.8 mmscmd)
- Nalgonda (0.3 mmscmd)
- Hyderbad (1.2 mmscmd)
- Andhra Pradesh and Sholapur(0.4 mmscmd)
- Pune (1 mmscmd)
- Thanke (3 mmscmed) in Maharashtra
The project would expand by laying spur lines from its Kakinada-Hyderabad-Uran-Ahmedabad pipeline.
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