Indraprastha Gas Ltd signs long term agreement with DTC to supply CNG

Indraprastha Gas Limited (IGL), the largest Compressed Natural Gas (CNG) distribution company in the country today signed a long term gas supply agreement with Delhi Transport Corporation (DTC), to supply CNG for a period of ten years till December 2030 in the presence of Mr. Kailash Gahlot, Transport Minister, Govt. of NCT of Delhi. Mr. AK. Jana, Managing Director, IGL signed the agreement on behalf of IGL, while Mr. Vijay Kumar Bidhuri, Managing Director, OTC signed the agreement on behalf of OTC. Senior officials of Delhi Government, IGL and OTC were also present on the occasion.

OTC is the largest CNG-powered bus service operator in the world with a fleet size of 3762 buses at present and is also in the process for procurement of 1000 new CNG buses which would shortly be plying on the roads of the national capital. OTC consumes around 2.80 lacs kgs of CNG per day for its buses which constitutes around 11% of daily CNG sale of IGL. The consumption of CNG is expected to increase further after the addition of new buses.

Earlier in 2010, IGL had signed the long term Gas Supply Agreement with OTC to supply CNG. As a part of the agreement, dedicated CNG filling facilities have been set up at 44 depots of OTC across Delhi and Naida to cater the fleet of OTC buses being used for public transport with a total compression capacity of 10 lakh kgs per day. These state of the art CNG filling facilities have helped in timely CNG fueling of the fleet. The initiative has resulted in optimization of time, finances and resources for OTC apart from ensuring timely commute of the buses on their respective routes. In addition, DTC has provided 19 plots adjacent to its depots to IGL for creation of hybrid facilities, which are used as retail outlets for serving the public.

The relationship between IGL and OTC dates back to inception of IGL and has been mutually beneficial for both organisations and DTC has been one of the largest customers of IGL.

Shares of INDRAPRASTHA GAS LTD. was last trading in BSE at Rs.512 as compared to the previous close of Rs. 510.7. The total number of shares traded during the day was 171971 in over 3482 trades.

The stock hit an intraday high of Rs. 524.8 and intraday low of 508.25. The net turnover during the day was Rs. 88256046.

Source : Equity Bulls

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