Torrent Gas, part of the USD 3 billion Torrent Group, has drawn up a Rs 10,000 crore capital expenditure plan spread over the next five years including Rs 5,000 crore investment in Tamil Nadu, a top company official said on Tuesday.
The company earlier in the day launched 25 CNG stations in Chennai and Tiruvallur districts which was formally inaugurated by Chief Minister M K Stalin through the virtual mode.
The company has set up its City Gate Station (or the Mother Station) at Vallur near Ennore in Tiruvallur district through which piped gas supply can be made to over 33 lakh residences.
The City Gate Station would also feed the 25 CNG stations that were inaugurated on Tuesday.
"I am pleased to inform you that the Torrent Gas plans to invest around Rs 10,000 crore in the city gas distribution (CGD) sector in the coming five years and Rs 1,900 crore has already been invested," Company Director Jinal Mehta told reporters.
Mehta said of the Rs 10,000 crore capex plan, Rs 5,000 crore would be invested in Tamil Nadu.
"Torrent Gas will spend around Rs 5,000 crore towards the creation of CGD infrastructure including the laying of steel pipelines and to provide natural gas to domestic, industrial and commercial establishments and towards setting up of CNG stations (in Tamil Nadu)," he said.
Mehta said the investment plan shall generate 5,000 direct and indirect jobs in the state.
He said funding for the capex plan would be a mix of debt 70 per cent and 30 per cent in the form of equity.
"We have a consortium of lenders that will take care of the debt component and the equity will come from Torrent Group's holding company which is Torrent Investments Pvt Ltd."
Mehta said by the end of September 2021, the company would have 50 CNG stations in Tamil Nadu and by end of June 2022, 100 CNG stations and by the end of March 2024, over 250 CNG stations in Tamil Nadu.
"We intend to make it very widely available across the three districts of Tamil Nadu -- Chennai, Tiruvallur and Nagapattinam," he said.
The capital expenditure would include laying of CGD infrastructure and and the company would also look at acquisition opportunities.
Asked if the company would have tie-up with oil marketing companies to use the fuel outlets for CNG supply, Mehta said: "Yes, we have already tied-up with IOCL, BPCL and HPCL."
"As a strategy we will be working on CNG being made available in the (fuel) stations of oil marketing companies and also set up our our company-owned and company-operated stations, dealer-owned and dealer-operated stations," he added.
