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Torrent Group’s city gas distribution (CGD) arm, Torrent Gas has entered into an agreement to take over Sanwariya Gas Limited, which has distribution authorisation for Mathura in Uttar Pradesh. This comes as the fourth acquisition in CGD space for the energy major in past three years.
Torrent Gas has entered into a Share Purchase Agreement (SPA) with the promoters of Sanwariya Gas Ltd for the takeover.
Sanwariya Gas has authorisation from the regulator – Petroleum and Natural Gas Regulatory Board (PNGRB) to provide Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) in the Geographical Area of Mathura.
“The transaction is subject to the approval from PNGRB and fulfilment of other condition precedents,” Torrent Gas informed.
Road ahead
The company has laid down plans to invest over ₹8,000 crore to develop CGD network in parts of India over the next 5 years. So far ₹1,500 crore has already been invested, the company informed.
Also read: Adani Total Gas, Torrent Gas acquire 5% stake each in IGX
With this acquisition, Torrent Gas has authorisation to set up CGD network across 17 Geographical Areas (GAs) spread over 33 districts in seven States and one Union Territory in the Country. Torrent’s authorised areas combined, have a population of over nine crore representing about 7 per cent of the total population of India.
Expanding presence
On the occasion of signing of the SPA, Jinal Mehta, Director, Torrent Gas, informed that the acquisition of Sanwariya Gas would increase the company’s presence in 33 districts across India.
“The Sanwariya Gas acquisition is our fourth acquisition in the CGD sector in three years and is a demonstration of Torrent’s commitment to contributing towards the achievement of the Hon’ble Prime Minister’s vision of creating a gas-based economy and increasing the share of natural gas in the Indian energy basket,” he said.
“Mathura has significant potential for growth in both the CNG and PNG segments,” he added.
HP Singh, Director, Sanwariya Gas commented, “Selling our stake in Sanwariya to Torrent has been a very conscious and considered decision. Torrent Gas brings in a lot of value and we believe the city and the residents of Mathura will immensely benefit from the experience and expertise of Torrent Gas in project execution and its customer centricity.”
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