News Release Details

IndianOil and Adani Energy Limited (AEnL) sign MoU on City Gas Distribution
New Delhi   08-Dec-2008
A Memorandum of Understanding (MoU) was signed at Mumbai on 8th December 2008 between IndianOil and Adani Energy Ltd. (AEL) for setting up a joint venture enterprise for City Gas Distribution (CGD) business in select markets of Haryana, Punjab, Rajasthan and Uttar Pradesh. The joint venture will also explore the formation of State-wise subsidiary companies and envisages distribution and marketing of CNG for the automotive sector and natural gas for domestic, commercial and industrial sectors. The MoU was signed by Mr Chandan Dasgupta, Executive Director (I/c), Gas, IndianOil and Mr. Rajeev Sharma, CEO & MD, AEnL, in the presence of Mr Sarthak Behuria, Chairman, Mr B M Bansal, Director (Planning & Business Development), Mr V C Agrawal, Director (Human Resources), Mr G C Gaga, Director (Marketing) of IndianOil. Mr Gautam Adani, Chairman, Adani Group, and Mr. Bhashit Dholakia, GM, Commercial, AEnL were present. IndianOil and Adani group already have a long-term agreement for creating import and storage facilities for crude oil at Mundra Port. There exists also a franchisee agreement by which CNG is being sold from a number of IndianOil retail outlets in Gujarat. The MoU executed on 8th, reflects this past association as well as a recognition of each others’ strengths and mutual desire to leverage the same for contributing to energy self-reliance of India. Mr Behuria said, "The MoU signed today leverages the respective strengths of both IndianOil and Adani Group, for strategic business association to make India energy self-sufficient." AEnL already has access to gas for CGD projects in Faridabad and Noida, which will now get further fillip from the joint venture. The venture leaves space for participation of local State Govts. and financial institutions as may be deemed necessary. The joint venture also envisages taking up equity in LNG regassification terminal being promoted by AEnL as also participation in any other LNG import and regassification terminal. Also on the anvil is development of CBM blocks at Jharia and bringing Gas for Rajasthan and Punjab.