GAIL, BPCL, HPCL bids for city gas licences raise eyebrows

GAIL, BPCL and HPCL NSE 0.21 % are competing for licences in 19 city gas distribution areas – nearly a third of 61 being contested in the latest bidding round – with the companies they control, drawing allegations of unfair practice.

For instance, the licence area comprising Baloda Bazar, Gariyaband and Raipur districts in Chhattisgarh has received 16 bids, of which six are from companies – GAIL NSE 0.70 % Gas, BPCL, HPCL, Indraprastha Gas (IGL), Mahanagar Gas (MGL) and Aavantika Gas – sharing a complex web of relationship. Gail Gas is a fully owned subsidiary of GAIL (India). GAIL (India) is also the promoter of MGL. Gail (India) and BPCL jointly control IGL NSE 0.20 %, while Gail (India) and HPCL jointly control Aavantika Gas.