Bharat Petroleum Corporation (BPCL), one of the largest public sector oil marketing companies and GAIL Gas, a 100% subsidiary of GAIL India will jointly develop the City Gas Distribution Network (CGD Network) in Haridwar district.

The company said, "BPCL and GAIL Gas have been awarded the authorization for laying, building, operating & expanding of a CGD Network in Haridwar district by the Petroleum and Natural Gas Regulatory Board established under the PNGRB Act, 2006."

"The authorized area for laying, building, operating or expanding the proposed CGD network shall cover an area of 2,305 kms. As per the minimum work program commitment prescribed by PNGRB, consortium shall lay 830 Inch kms of pipeline network and provide infrastructure for PNG domestic connection for 16,905 house hold within five year of the grant of authorization," it added.

The boards of both companies have approved the proposal to form a new Joint Venture (JV) company for developing CGD network in Haridwar.

The proposed JV company shall be incorporated under the Companies Act, 2013, with equal equity participation from BPCL and GAIL Gas and equity stake of up to 10% for Uttarakhand Government or its nominee.

The CGD Network shall cater to the demand of CNG and Piped Natural Gas to consumers in the domestic, commercial and industrial segments. The authorization provides for a physical exclusivity for laying gas pipelines and related infrastructure in the GA over the next 25 years and a marketing exclusivity for 5 years.

Shares of the company gained Rs 7.95, or 0.89%, to settle at Rs 903.85. The total volume of shares traded was 142,024 at the BSE (Monday).