Steel pipe makers in the country will benefit from the implementation of the recently awarded city gas distribution (CGD) licenses. The award of licenses is set to offer a big fillip to makers of electric resistance welded (ERW) and submerged arc welded & seamless (S&S) segments.
A report by Crisil estimates that CGD orders will require at least 10,000-15,000 kilometres per annum of pipes through fiscal 2029, entailing an opportunity of over Rs 5,000 crore per annum over 10 years.
Terming the CGD orders to be potential game changers, the report says over 10 rounds of bids for CGD orders for 228 geographical areas are expected to generate an investment of over Rs one trillion (more than 80 per cent still to be incurred).
