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Era of Exclusive Distribution Right in CGD Might End Soon

News

Piped gas consumers can expect market competition among suppliers as the monopoly of city gas firms in Mumbai, Delhi and about 20 other cities is likely to end. 
Source:  ET

SNP Insights

Promoting competition among city gas distribution through ending exclusive right of current distributors, might lower down cost of city gas & make it more affordable to end consumers. Yet pertaining to fact that, this new move might dwindle profit margin of existing distributors who have invested huge capital in erecting the distribution infrastructure, govt. must prepare a proper method of payment for right of use of distribution network, failing which investor confidence in CGD business might crumble.

Source: SNP Infra Research