The company has established its City Gate station (or mother station) in Vallur, near Ennore, in the Tiruvallur district, through which piped gas supply can be made to more than Rs 33 lakhs of residences.
The City Gate station would also power the 25 CNG stations that opened on Tuesday.
"I am pleased to inform you that the Torrent Gas plans to invest around 10 billion rupees in the city's gas distribution sector (CGD) over the next five years and 1.9 billion rupees have already been invested, "company director Jinal Mehta told reporters.
Mehta said of Rs 10,000 crore Capex plan, 5,000 million rupees would be invested in Tamil Nadu.
"Torrent Gas will spend around 5,000 crore rupees on the creation of CGD infrastructure, including the installation of steel pipes and to provide natural gas to domestic, industrial and commercial establishments and for the installation of CNG stations (in Tamil Nadu)" , He said.
Mehta said the investment plan will create 5,000 direct and indirect jobs in the state.
In consultation, he said that the financing for the investment plan would be a combination of 70 percent debt and 30 percent in the form of equity.
"We have a consortium of lenders that will handle the debt component and the capital will come from the Torrent Group holding company, which is Torrent Investments Pvt Ltd."
Mehta said that by the end of September 2021, the company would have 50 CNG stations in Tamil Nadu and by the end of June 2022, 100 CNG stations and by the end of March 2024, more than 250 CNG stations in Tamil Nadu.
"We intend to make it widely available in the three districts of Tamil Nadu: Chennai, Tiruvallur and Nagapattinam," he said.
The capex would include the installation of CGD infrastructure and the company would also seek acquisition opportunities.
When asked if the company would have partnered with oil trading companies to use fuel outlets for CNG supply, Mehta said: "Yes, we have already partnered with IOCL, BPCL and HPCL."
"As a strategy, we will work to make CNG available at the (fuel) stations of oil trading companies and we will also install our company-owned and operated stations, concessionaire-owned and operated stations," he added. .
