Indian Autogas plans 1,000 pumps, to infuse Rs 1.5k cr

Indian Autogas Company Ltd (IACL), a leading private energy company engaged in trading of auto liquefied petroleum gas (ALPG), on Wednesday announced that the company is planning to set up 1,000 auto LPG dispensing stations across the country with an estimated investment of Rs 1,500 crore over a period of next three to four years.

SM Anthony Thomas, promoter and director of the company, said at a press conference in Chennai that the company was in advanced talks with land owners across major states including Tamil Nadu, Andhra Pradesh, Maharashtra, Karnataka and Kerala to set up these stations. Thomas said while part of the investment would be made from internal accruals, the remaining would be raised from loans and from private investors in tranches.

The company, the second largest player of LPG gas distribution in India, was already running 28 stations across southern states, mainly through the franchise route, he added.

To a question, he said: "We have arranged funds to the tune of close to Rs 200 crore, including around Rs 90 crore from internal accruals, for the first two years." For the third and fourth year, the company would look at raising funds from investors, private equity partners or from the market, Thomas said. Of the proposed Rs 1,500-crore investment, close to Rs 785 crore would be spent on stations and the remaining on storage tanks, he said.

According to him, with the government enacting laws and rules to promote green fuels, the consumption of auto LPG will witness a tremendous increase in future. Awareness about auto LPG as a low-cost, eco-friendly fuel is also gaining momentum in India. In addition, automobile companies have also commenced production of auto LPG/CNG-operated vehicles. "There is a great opportunity for growth for the Indian auto gas industry. As an early entrant in the industry, we see a huge growth potential," Thomas said.

Elaborating on Vision 1,000, Thomas said IACL would be setting up 565 ALDS in Tamil Nadu, 261 in Andhra Pradesh, Karnataka and Maharashtra and 195 in Kerala. These stations will be company-owned. This means that IACL would invest in civil works, plant and machinery and the operator has to provide land on lease to the company.