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IGL - Indraprastha Gas News Story

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Market Cap £3.55bn
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Revenue £526.0m
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India to launch rules to end gas distributors' monopoly in 34 areas

Tue 16th July, 2019 9:34am
* Rules will allow new players to use the networks of
    * Thirty-four areas in 11 states would be opened up to
    * The move threatens business of major gas distribution firm
    * It could provide new opportunities for aggressive players

    By Nidhi Verma and Promit Mukherjee
    NEW DELHI, July 16 (Reuters) - The Indian government is set
to introduce rules in six months that could lead to the
phase-out of monopolies controlled by natural gas distribution
companies in 34 cities, including New Delhi and Mumbai, allowing
many consumers to choose a new supplier, a senior regulatory
official said.
    In 2009, natural gas supply regulator - the Petroleum and
Natural Gas Regulatory Board (PNGRB) - gave exclusive gas
marketing rights, initially for five years, to companies who had
established gas distribution networks in cities across the
    It allowed them to use their pipelines exclusively for 25
years to help them recover billions of dollars they had
    However, now one of the three members of the PNGRB's board
said the regulator is soon moving to open up the still
relatively new business to competition.
    "These companies have more than recovered their costs as
indicated by their profitability and market cap," said the board
member, Satpal Garg, who is in control of its commercial and
monitoring responsibilities.
    The rules will be ready in three months, and implementation
would take another three months as the regulator will first seek
feedback from companies and the public, he said.

 (Reporting by Nidhi Verma, Editing by Martin Howell and Sherry
 ((; +91 11 49548031; Reuters
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