The state-owned Hindustan Petroleum Corporation (HPCL) is close to acquiring the Greater Calcutta Gas Supply Company (GCGSC), which is engaged in the business of distributing and marketing coal gas in the city of Kolkata and nearby industrial areas. Based on the book value of its assets, the indicative value of the company is around Rs 100 crore. HPCL proposes to participate in GCGSC through a new joint venture company, in which the majority equity of 51% will be held by HPCL. The government of West Bengal will hold 26%, while the remaining 21% will be held by Coal India Ltd, which is currently supplying gas to GCGSC from its Dankuni Coal Complex (DCC).
Confirming the move, a senior HPCL executive said that the acquisition of GCGSC would present it with strategic gas marketing rights, embedded with an option to participate in the expansion of distribution grid once additional sources of natural gas emerge.
