Gujarat Gas get PNGRB approval for gas network in Thane; stock surges 15%

MUMBAI: Shares of Gujarat Gas Company (GGCL) surged over 15 per cent in early trade as it got an authorisation from Petroleum and Natural Gas Regulatory Board (PNGRB) to lay, build, operate, or expand city or local natural gas distribution network (CGD) for the geographical area of Thane, Maharashtra.

“GGCL has been granted 300 months of infrastructure exclusivity i.e. valid up to April 01, 2040 and 60 months of marketing exclusivity valid up to April 01, 2020 for the CGD network,” the company said in a filing to stock exchanges.

“Further, the Authorised area for laying, building, operating or expanding the proposed CGD Network shall cover a geographical area of 8,683 sq. km.”

According to an analyst tracking the sector, the company will supply gas to nearly 10 lakh households with an approximate investment of Rs 1,207 crore. The gas will be used for small and medium industrial units as well.

At10:00 a.m.; the stock was at Rs 758.45, up 13.70 per cent, on the BSE. It rallied 14.96 per cent to touch intraday high of Rs 766.90 in early trade.