A big development for ONGC and Oil India Limited (OIL). The government is planning to run all the plants on gas. Recently a direction was given to run the industrial plants in Delhi on gas. Zee Business' Chetan Bhutani revealed in his chat with Managing Director Anil SInghvi in this exclusive report.  

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On 23 December 2020, the Chief of Delhi’s Air Quality Commission has directed for the switching over of 1644 oil industries in the capital to Piped Natural Gas (PNG). Bhutani said that his sources in the central government say that they completely support this proposal as the PNG is a way by which pollution could be reduced in the Delhi-NCR region significantly.

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The government is also of the view that these industries should use gas as fuel if they can operate with it. He said that the government wants the reliance on coal and pet coke to get reduced. 

This augurs well for ONGC and Oil India, Bhutani said adding that the orders for these companies are likely to go up.  

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The government is also expected to soon start talks with other states in this regard. It is of the view that all those industries which are capable of doing this should definitely do this. 

ONGC and Oil India are expected to play a big role in the reduction of coal and pet coke. He said that there are more companies in this but ONGC and OIL are expected to be the biggest beneficiaries. 

He said that this was only at an initial stage and it will be seen how things proceed in future. 

Zee Business Managing Editor Anil Singhvi said that this was a big development particularly for the oil stocks. He said that a lot of action is happening now for PSUs. 

At 3 pm, the stock of ONGC were trading at Rs 96.60 on the NSE, up by 3.6 per cent from the previous close. Meanwhile, the stock of OIL were also up by 3 per cent and were trading at Rs 112.