IOC plans retail JV with RIL

PANIPAT: Indian Oil plans to invest about Rs 2,000 crore for retailing natural gas to households and automobiles under a JV with Reliance Industries (RIL). “We are in talks for a 50:50 JV for city gas distribution projects along the pipeline Reliance Industries is building from its KG basin field,” IOC chairman Sarthak Behuria told mediapersons.

It is likely that IOC would like to take advantage of RIL’s pipelines. RIL is laying pipelines from Kakinada in Andhra Pradesh to Chennai, and from Ahmedabad in west to Haldia in east. The two companies are currently holding talks on the proposed JV, which would supply piped gas to households and industries and CNG to automobiles in cities along these pipelines.

IOC has identified 10 cities in the first phase to implement the project and the investment in each city is estimated at Rs 200 crore. IOC officials said no timeframe has been set for the formation of JV.