Gujarat Gas has rallied 10% to Rs 575 on the BSE in early morning trade after the company announced that the Petroleum and Natural Gas Regulatory Board (PNGRB) granted permission to develop city gas distribution network (CGD) in Ahmedabad, Gujarat.
“PNGRB has issued letter dated 22th June 2016 for grant of authorization to Gujarat Gas to lay, build, operate, or expand city or local natural gas distribution network (CGD) for geographical area of Ahmedabad district (excluding the already authorized) in the state of Gujarat,” Gujarat Gas said in a release.
The company has accepted the authorisation vide a confirmation letter to PNGRB on June 27, it added.
As per the provision of the PNGRB, Gujarat Gas has granted 300 months of infrastructure exclusivity valid up to June 21, 2041 and 60 months of marketing exclusivity valid up to June 21, 2021 for the CGD network. The authorisation area for proposed CGD network will cover a geographical area of 5760.41 square kilometers, the company said.
At 10:06 AM, the stock was up 8% at Rs 563 on the BSE. A combined 276,412 shares changed hands on the counter on the BSE and NSE so far.