May

21

Reliance Industries Gets Govt Approval For Piped Gas Deal

Filed Under Energy, India Business, Indian Companies | Leave a Comment

Reliance Industries Ltd. (RIL) has received government approval to sign agreements with firms supplying gas to households and car owners in major cities.

RIL got Indian govt approval for the allocation of gas from RIL’s Krishna-Godavari basin to gas distribution firms (CGD) in Delhi as well as Mumbai, Ahmedabad, Gandhinagar, Agra, Indore and Ujjain.

This move is significant for the following reasons.

  • The natural gas used in a compressed form or supplied to homes through pipes is a far cheaper alternative than LPG, diesel or petrol. This move by the government will result the distribution firms in the form of adding more consumers and generate more revenue once the gas becomes available.
  • The cost of transport for the commuters will drop, who are using buses, taxis and auto rickshaws using CNG. This is expected to benefit RIL in a big way.
  • RIL is already selling natural gas to fertilizer and power firms and the addition of CGD firms will help increase its revenue and profitability. [source : Asian Cerc]