NEW DELHI, 18 November (H.S.)
The central government has once again given a big blow to city gas distribution companies like Mahanagar Gas Limited (MGL), Indraprastha Gas Limited (IGL) and Gujarat Gail Limited (GGL) by reducing the allocation of gas under the Administered Price Mechanism (APM). Due to this shock, the shares of IGL, MGL and GGL fell sharply as soon as the trading started in the domestic stock market on Monday.
On Monday, the stock of Indraprastha Gas Limited (IGL) opened at Rs 370 with a fall of Rs 35.80. Due to strong selling at the beginning of the trading, this stock came down to the level of Rs 324.70. However, after this, there was a slight improvement in its movement due to the start of buying. After the first 2 hours of trading, at 11:15 am, the stock of IGL was trading at Rs 332.50, down by Rs 73.30 or 18.06 percent.
Shares of Mahanagar Gas Limited (MGL) also fell by Rs 237.40 to Rs 1,075.25 as soon as the market opened today. However, due to buying that started after this fall, at 11:15 am, this stock was trading at Rs 1,155.50, down by Rs 157.15 or 11.97 percent.
Similarly, shares of Gujarat Gas Limited (GGL) also took a huge dive as soon as the market opened today. This stock opened at Rs 476.05 with a weakness of Rs 9.95. Due to selling pressure at the beginning of trading, this stock fell by Rs 43.50 to Rs 442.50. However, after this, due to buying starting, the condition of this stock improved. After the first 2 hours of trading, at 11:15 am, GGL's share was trading at Rs 455.50, down by Rs 30.50 or 6.28 percent.
The government has cut the APM gas allocation of city gas distribution companies by 20 percent for the second consecutive month. Due to this cut, the total gas availability under APM with these companies is now between 40 to 45 percent. 1 month ago, city gas distribution companies used to have 65 to 70 percent gas availability under ATM. Due to the cut in APM gas, now city gas distribution companies will have to use sources like imported LNG, HGPHT and new field gas to supply gas to their customers, due to which the cost of these companies will increase comparatively. Due to the reduction in the gas provided under the Administered Price Mechanism, now the city gas distribution companies will have to buy about 50 percent of the raw material (raw gas) from the open market at a higher price.
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Hindusthan Samachar / Nimish kumar