DSM Infratech beats GAIL to bag Mathura city gas project
Relatively less known DSM Infratech has succeeded in winning the right to establish retail CNG stations for automobiles and supplying piped cooking gas to households in Mathura by beating state-run GAIL India ltd.
GAIL Gas, a unit of GAIL, was the sole bidder for city gas distribution project in Mathura when bids for six cities closed in March. But Petroleum and Natural Gas Regulatory Board (PNGRB) extended bid date for Mathura by one month.
DSM a new comer in the business with no experience in city gas business, beat GAIL by submitting a very low pipeline tariff.
For the first five years - the monopoly period for the operator, DSM bid Rs 0.10 per million British thermal unit as the pipeline transportation tariff. GAIL had quoted over Rs 5 in the bid that was submitted in March, they said.
From sixth year, DSM says it will charge Rs 10, raising doubts that the company had under-bid the pipeline tariff so as to make up for under-pricing the gas transportation charge by pricing CNG and piped gas at higher prices.
GAIL has raised doubts over the entire bidding process and has approached the Appellate Tribunal, saying the methodology adopted by PNGRB was not in conformity with CAG guidelines for bidding.
According to CAG, if bid deadline is extended, companies have the right to revise their price bid. The Tribunal is likely to hear GAIL plea on Wednesday, sources said.
In March, GAIL Gas had emerged top bidder to win retailing rights for Kota and Dewas.
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