Expecting capex to be about Rs 700 crore to Rs 1,000 crore in one year: JN Singh, Gujarat Gas

In an interview to ET Now, JN Singh, Gujarat Gas, shares his business ideas. Edited excerpts:

ET Now: Tell us about the distribution permissions that you have got for PNGRB?

JN Singh: We have got the distribution permission presently for Ahmedabad district, excluding the areas which were already authorised. That means a good amount of industrial areas in Ahmedabad. We have also got for the Dahej area that is again a very important industrial area.

The Ahmedabad area also includes Dholera where the government of Gujarat is going for special investment region in a very big way. We are also getting it for Dahod.

ET Now: How are your overall volume seen edging up, would you see it edging up higher now that this permission is in place and what is the outlook on your volumes overall as well for the next 12 to 14 months?

JN Singh: As of now we will have got about 10.8 lakh customers, which barely covered 34% of the total domestic customers all over the country. With this, we expect to add another over a period of next one-one and a half years.

See it is a volume gain. We would like to cover those areas where we have been given and more areas. Right now we are supplying around 5.5 million standard cubic metres per day.

ET Now: What are the expansion plans lined up and capex plans for the company?

JN Singh: Capex would be I can foresee in the next one-one and a half years about Rs 700 to Rs 1,000 crore would be our capital expenditure.