India Energy Exchange (IEX) on Wednesday announced divesting 4.93 per cent equity stake in its gas exchange, IGX, to India's largest oil company Indian Oil Corporation.
IEX chairman and managing director SN Goel said that the move augurs well in the joint endeavour to build the gas market in India and is aligned with the government's vision of accelerating the share of gas in the energy mix to 15 per cent by 2030.
''We strongly believe that IndianOil will bring huge value through guidance and support to our new initiative of IGX. IndianOil ... their huge expertise in the gas sector will help add new products for Indian markets,'' Goel said in a statement.
Indian Oil has a diversified presence across oil, gas, petrochemicals, and fertilizer segments.
"At Indian Oil, we acknowledge the important role Indian Gas Exchange has to play in building a gas-based economy and also creating vibrant gas markets in the country,'' Indian Oil chairman Shrikant Madhav Vaidya said.
Energy major Indian Oil has presence in almost all the streams of oil, gas, petrochemicals and alternative energy sources with a net profit of Rs 21,836 crores for the financial year 2020-21.
With a 33,500 plus workforce, Indian Oil is providing energy access to millions of people through an extensive network of more than 50,000 customer touchpoints.
Vaidya said Indian Oil is also committed to that vision and has a presence in the complete value chain of gas marketing; from LNG terminals, pipeline network and Gas retailing through the City Gas Distribution (CGD) network.
''Our successful bids in the 11th Round of CGD bidding are also in line with our strategy to emerge as a dominant player in the Indian gas market. ''And given the synergy, our partnership with the Indian Gas Exchange is a step towards attaining our mission of ensuring the availability of Gas across the nation at competitive prices,'' Vaidya said.
(With inputs from PTI)