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Construction : Deals | July 2012 | Source : Construction Update

Adani, Torrent not to buy BG stake in Gujarat Gas

Both Adani Power and Torrent Power were in the race to buy Gujarat Gas. But it is speculated that the Gujarat government has arm-twisted the two of the state's biggest corporate houses to desist from bidding for Gujarat Gas Company.

Days before the bidding closed to buy 65.12 per cent stake of British Gas (BG) in Gujarat Gas, a group of top bureaucrats summoned Gautam Adani of Adani group and Sudhir Mehta of Torrent group. It is said that the bureaucrats conveyed to Adani and Mehta the wishes of Minister of State for Energy Saurabh Dalal that they should not bid.

Eventually, a consortium led by Gujarat State Petroleum Corporation emerged as the sole bidder to buy British Gas' stake in Gujarat Gas for Rs 3,000 crore. When asked if the State government pressurised Adani and Mehta to back off at the eleventh hour, Dalal said that whatever be the case, his company has not done anything against the interest of Gujarat government.

Gujarat Gas distributes gas in three major cities, Surat, Bharuch and Ankleshwar. This would have been a good buy for Adani, who supplies gas in Ahmedabad and other regions. Ditto for Mehta who supplies electricity in Surat.

Other members of the GSPC consortium are Oil and Natural Gas Commission (ONGC) and Bharat Petroleum Company (BPCL). While GSPC is 50 per cent partner in the consortium, ONGC and BPCL have 25 per cent stake each.
 
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