Shares of city gas distribution (CGD) companies such as Indraprastha Gas Ltd, Mahanagar Gas, Gujarat Gas, Gujarat State Petronet rallied over 9-18 percent to hit their fresh 52-week highs on Thursday.

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Gujarat Gas rallied over 18 percent, Indraprastha Gas surged over 9 percent, Mahanagar Gas shares jumped more than 6 percent, while Gujarat State Petronet soared more than 13 percent.

The rally in share prices come after Prime Minister Narendra Modi said to bring natural gas under the purview of Goods & Service Tax (GST) regime and announced massive spending on the country’s oil and gas infrastructure.

“We are committed to bringing natural gas under the GST regime. I want to tell the world to come and invest in India,” PM Modi said while launching key oil and gas projects in Tamil Nadu on Wednesday.

PM also said that the government will spend over Rs 7.5 lakh crore in the country’s oil and gas infrastructure in the next five years.

“We have planned to spend Rs 7.5 lakh crore in creating oil and gas infrastructure over five years. A strong emphasis has been laid on the expansion of city gas distribution networks by covering 407 districts,” PM said emphasizing on ‘One Nation One Gas Grid’ vision.

At 10:35 am, the shares of Indraprastha Gas Ltd were trading 7.98 percent higher at Rs 588.35, Mahanagar Gas gained 6.24 percent to Rs 1,223.50 apiece, Gujarat Gas surged 11.71 percent to Rs 496.70 and Gujarat State Petronet added 14.52 percent to Rs 274.00 apiece on the BSE.

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