Gujarat Gas Announces Rs. 1,200 Crore Capex for FY25, to Connect 3.3 Lakh New Households.

Gujarat Gas Ltd (GGL) has set aside Rs. 1,200 crore for capital expenditure in the financial year 2024-25. A significant portion of this investment will be dedicated to expanding its pipeline network and providing new piped natural gas connections to over 3.3 lakh households across six states, including Gujarat.

The city gas distribution (CGD) company also plans to establish 200 CNG stations in at least four states over the next two years. "In the last financial year, we had a capex of Rs. 900 crore. This year, we will be increasing it by over 33 percent to Rs. 1,200 crore," a Gujarat Gas official told BusinessLine.

"We also plan to provide new connections to 3.3 lakh households this year. We have 36,000 km of pipeline, and the majority of the investment will go into laying new steel pipelines across six states," the official added. The new connections will be established in Rajasthan, Madhya Pradesh, Punjab, Haryana, and Maharashtra (Vasai, Virar, Palghar). Each connection is estimated to cost around Rs 15,000-25,000 in urban areas, with CGD companies expecting to recover the cost over 12-15 years.

GGL, India's largest CGD company, holds 27 CGD licenses in 44 districts across Gujarat, Maharashtra, Rajasthan, Haryana, Punjab, Madhya Pradesh, and the Union Territory of Dadra and Nagar Haveli. GGL is involved in the marketing and distribution of natural gas, both piped and compressed, supplying PNG to industrial, commercial, and domestic customers, as well as CNG to the transportation sector.

Additionally, Gujarat Gas plans to establish over 200 new CNG stations, which will be fully dealer-owned and dealer-operated (DODO). "Currently, we have 850 operational CNG stations, and we expect 200 new stations to come up in the next two years," the official said, noting that the company has received over 600 applications for these stations. Of the 200 new CNG stations, 75 percent are expected to be set up in Gujarat, with the remainder spread across Haryana, Rajasthan, and Maharashtra.

GGL serves over 1.93 million domestic households, 14,522 commercial customers, 4,335 industrial units, and operates 850 CNG stations. More than 560 of these stations are located in Gujarat, with the rest outside the state.

HBL