Indraprastha Gas (IGL) advanced 3.01% to Rs 526.20 after the company signed an agreement with Delhi Transport Corporation (DTC) for long term supply of compressed natural gas (CNG).
The CNG distribution company signed a long-term gas supply agreement with DTC to supply CNG for a period of ten years till December 2030.
DTC is the largest CNG-powered bus service operator in the world with a fleet size of 3762 buses at present and is also in the process for procurement of 1000 new CNG buses which would shortly be plying on the roads of the national capital.
It consumes around 2.80 lakhs kgs of CNG per day for its buses which constitutes around 11% of daily CNG sale of IGL. The consumption of CNG is expected to increase further after the addition of new buses.
Earlier in 2010, IGL had signed the long-term gas supply agreement with DTC to supply CNG. As a part of the agreement, dedicated CNG filling facilities have been set up at 44 depots of OTC across Delhi and Naida to cater the fleet of OTC buses being used for public transport with a total compression capacity of 10 lakh kgs per day.
Additionally, DTC has provided 19 plots adjacent to its depots to IGL for creation of hybrid facilities, which are used as retail outlets for serving the public.
The relationship between IGL and DTC dates back to inception of IGL and has been mutually beneficial for both organizations and DTC has been one of the largest customers of IGL.
Indraprastha Gas is a natural gas distribution company. It supplies natural gas as cooking and vehicular fuel. On a consolidated basis, the company's net profit jumped 28.4% to Rs 381.83 crore on 13.1% fall in net sales at Rs 1446.16 crore in Q3 December 2020 over Q3 December 2019.
Powered by Capital Market - Live News
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU