Adani Total Gas Limited (ATGL) has made headlines by securing a significant global funding amounting to ₹2,630 crore for its city gas distribution business. This milestone is set to enhance the company’s capacity to serve over 1,670 crore people, reaching approximately 14 percent of India’s population.
The funding marks a collaborative effort involving five international lenders: BNP Paribas, DBS Bank, Mizuho Bank, MUFG Bank, and Sumitomo Mitsui Banking Corporation. Their participation underscores the confidence in ATGL’s operations and its role in the evolving energy landscape.
Strengthening Sustainable Development
During the announcement, Parag Parikh, CFO of ATGL, emphasized the importance of this global funding. He noted that the involvement of international lenders bolsters ATGL’s position as a key player in city gas distribution, particularly as a transition fuel. This funding is not only expected to accelerate the company’s sustainable development but also represents a strategic step toward securing future financing aligned with its capital management plan, aimed at creating long-term value for stakeholders.
Accelerating Capital Expenditure Program
The new capital infusion will facilitate a rapid expansion of ATGL’s city gas distribution network across 34 authorized geographical areas (GAs) in 13 states. The company plans to enhance the reach of its piped natural gas (PNG) and compressed natural gas (CNG) infrastructure, fostering an ecosystem conducive to a gas-based economy.
Boosting Natural Gas Utilization
The company highlights that the utilization of PNG and CNG offers a convenient, cost-effective, and environmentally friendly fuel option. This shift is projected to significantly increase the share of natural gas in India’s energy basket from the current 6 percent to 15 percent by 2030. ATGL has also established a comprehensive financing framework that will enable it to secure future funding in line with its ambitious business plan.
With these developments, ATGL is poised to play a crucial role in transforming India’s energy sector, further solidifying its commitment to sustainable growth and innovation in city gas distribution.
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