Gujarat Gas Ltd (GGL) allocated ₹1,200 crore for capital expenditure in the financial year 2024-25. The significant investment will primarily focus on expanding its pipeline infrastructure and adding new piped natural gas (PNG) connections for more than 3,30,000 households across six states, including Gujarat.
The company, which specializes in city gas distribution (CGD), plans to establish 200 new CNG stations in at least four states within the next two years. The capital expenditure for the previous fiscal year was ₹900 crore, but this year’s budget represents a thirty-three percent increase.
The expansion will involve laying new steel pipelines spanning over 36,000 kilometers across Rajasthan, Madhya Pradesh, Punjab, Haryana, and Maharashtra (including Vasai, Virar, and Palghar). The cost for each new connection is estimated to be between ₹15,000 and ₹25,000 in urban areas, with a recovery period of 12 to 15 years for the CGD companies.
Gujarat Gas, one of India’s largest CGD entity, holds 27 CGD licenses covering 44 districts in Gujarat, Maharashtra, Rajasthan, Haryana, Punjab, Madhya Pradesh, and Dadra and Nagar Haveli.
The company’s operations include the marketing and distribution of both piped and compressed natural gas to industrial, commercial, and domestic customers, as well as providing CNG to the transportation sector. As reported by businessline, Gujarat Gas is planning to open over 200 CNG stations, all of which will be dealer-owned and dealer-operated (DODO).
