Indraprastha Gas to spend Rs 1600 crore on Expansion

Indraprastha Gas to setup 50 new CNG outlets across New DelhiIndraprastha Gas Ltd (IGL), the state-owned automotive and domestic gas retailer, has planned to spend Rs 1,600 crore on expansions of its retail outlets and Piped Natural Gas (PNG) network in and around the NCR.

The company intends to expand its CNG retail outlets to 240 with an investment worth Rs 800 crore, before the commencement of the Commonwealth Games in October

Presently, IGL sells CNG to fuel vehicle engines through its 163 retail outlets in the Capital.

Apart from this, the company has also sketched an investment plan worth Rs 800 crore towards expansion of the PNG network in Delhi and the national capital regions
(NCR) of Noida and Greater Noida.

The PNG network currently covers 140,000 households in Delhi and the NCR. The company plans to add 50,000 new PNG connections in the current financial year.

Nirmal Bang, a well-known brokerage firm, has recommended a buy rating on Indraprastha Gas, with price target of Rs 190, in its report dated June 3, 2009. At 1:55 pm, the scrip of the company is trading at Rs 137, down 3% on BSE.

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