look news india
Hyderabad-based Megha Engineering & Infrastructure (MEIL), the second-largest buyer of electrical bonds worth Rs 966 crore and facing charges, has put its gas distribution business up for sale as it is struggling to meet targets. Wholly-owned subsidiary Megha City Gas Distribution (MCGDPL) has decided to consolidate operations, following which it approached buyers including state-owned Indian Oil Corporation, Hindustan Petroleum Corporation, Bharat Petroleum Corporation and Indraprastha Gas. The companies are reviewing the data and offers.
MEIL is a $5 billion infrastructure company. It is involved in hydrocarbons, electric buses, defense, power, transportation and manufacturing sectors. In the year 2015, it jumped into the city gas distribution business under the brand name Megha. Also operated as MEIL till the financial year 2021-22. In September 2022, MEIL transferred the business to MCGDPL. Which has a license to distribute city gas in 62 districts of ten states.
Excited by the prospects of CT gas distribution, several companies have submitted aggressive bids. MCGDPL is one of them. But now they are eyeing massive investment incentives to meet their minimum work programme.
A look at the company's gas distribution business
In the year 2015 Megha Gas established CT Gas distribution business under MEIL.
Ten cities, 62 districts received Government Accounting Standards (GAS) in three auction phases.
Target of 2,144 CNG pump connections and 1.24 crore PNG by FY 2031-32
If the target is not achieved, a fine will have to be paid
Bank guarantee of Rs 750 crore provided to Petroleum and Natural Gas Regulatory Board (PNGRB)