InvestorQ : Is it true that the government will be heavily investing in all-India gas infrastructure and what does it mean for GAIL, Petronet LNG, IGL and MGL?
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Is it true that the government will be heavily investing in all-India gas infrastructure and what does it mean for GAIL, Petronet LNG, IGL and MGL?

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Tisha Malhotra answered.
5 months ago
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The Minister for Petroleum, Dharmendra Pradhan, has announced during the week that the government would be investing up to $60 billion or close to Rs.450,000 crore between now and 2024. The main purpose of this investment will be to bolster gas infrastructure in India and improve the gas component in the energy mix in India.

In the process, the government expects that the share of gas in the overall energy mix will go up sharply from the current level of 6% to 15% of the energy mix by the year 2030. That will surely be a quantum of gas usage and will not only be a cheaper input for the Indian economy but also greener and more eco friendly.

The total investment will be spread across a variety of infrastructure projects including gas pipelines, LNG infrastructure and city gas distribution or CGD networks; as they are better known as in India. This is likely to substantially benefit the main users of gas like households, vehicles, gas-fired plants etc.

At lower prices, the government during the current year managed to fill up its entire petroleum reserves capacity consisting of 5.33 MT. This storage is spread across Visakhapatnam, Mangalore and Padur centres. However, for a country like India the way ahead is gas and that is what this infrastructure push aims at.

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