Torrent Gas draws up Rs 10,000 cr capex plan

Will spend around Rs 5,000 crore towards the creation of CGD infrastructure.

Torrent Gas, part of the Torrent Group, has drawn up a Rs 10,000 crore capital expenditure (capex) plan spread over the next five years including Rs 5,000 crore investment in Tamil Nadu.

The company has launched 25 CNG stations in Chennai and Tiruvallur districts which was formally inaugurated by Chief Minister MK Stalin through the virtual mode.

The company has set up its City Gate Station (or the Mother Station) at Vallur near Ennore in Tiruvallur district through which piped gas supply can be made to over 33 lakh residences.

The City Gate Station will also feed the 25 CNG stations that were inaugurated on 27 July 2021. Of the Rs 10,000 crore capex plan, Rs 5,000 crore will be invested in Tamil Nadu.

Torrent Gas will spend around Rs 5,000 crore towards the creation of CGD infrastructure including the laying of steel pipelines and to provide natural gas to domestic, industrial, and commercial establishments and towards setting up of CNG stations in Tamil Nadu.

The investment plan shall generate 5,000 direct and indirect jobs in the state. Funding for the capex plan would be a mix of debt 70% and 30% in the form of equity.

By the end of September 2021, the company will have 50 CNG stations in Tamil Nadu and by end of June 2022, 100 CNG stations and by the end of March 2024, over 250 CNG stations in Tamil Nadu.

The capital expenditure will include laying of CGD infrastructure, and the company will also look at acquisition opportunities.