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City Gas Distribution companies: Cashing in on their monopolies
Jul 04: City gas distribution companies are enjoying a good run given their monopoly over their geographical areas
8While they may sit on their monopolies and not do much, the going will remain good until their exclusive periods come to an end
8An example is Green Gas Ltd, which enjoys PNG and CNG distribution rights in Lucknow for five years and exclusive city gas infrastructure development rights for 25 years in Agra and Lucknow.
8GGL thus has a significant monopoly in the City Gas Distribution (CGD) business in its areas of operation.
8Consequently, the company is unlikely to experience any competitive pressures over the near to medium term even though it has been modest in the development of its infrastructure and it can do much more than what it is doing now.
8Its CNG infrastructure is limited and as for PNG, it has been able to garner only 16,000 PNG customers as of now.
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