part of its diversification drive, the Gas Authority of
India (GAIL) is planning to add another 10,000km of optic
fibre network to its existing 8,000km, to connect 73 cities
at a cost of Rs 2.4 billion.
project will follow closely the schedule of National Gas
grid''s completion, which is estimated to cost Rs3 billion.
The optic fibre network will cater to demand for national
long distance capacity on leased basis to private long
distance telephony providers such as VSNL, Tata Teleservices,
etc. Apart from this, it will be used for their internal
requirement for running the SCADA network
The company is also planning to increase polymer capacity
in FY05 by 50,000 tonnes. The petrochemical complex at
Pata is being expanded in two stages and the company plans
to sell up to 15 per cent of the LPG produced to bulk
customers, as the current market realisations on bulk
sales are higher than what is being sold to PSU marketers.
part of its effort to increase access to gas supplies,
GAIL, in consortium with ONGC and other PSU''s, has taken
a stake in 12 exploration blocks including one in Myanmar.
It plans to invest around Rs2.3 billion in FY05 (Rs 1.0bn
in FY04) for exploration of these blocks.
Myanmar exploration block, which has estimated reserves
of around 5-6 tcf, will take between two and three years
to develop the field. GAIL has not yet done the feasibility
study on whether to bring the gas to India through pipeline
or in form of LNG. GAIL has 10 per cent interest in the
venture with majority being held by Daewoo, OVL and ONGC.
company is also looking at gas retailing. On its city
gas distribution business, GAIL has plans to set up the
distribution, which will include compressed natural gas
(CNG) for automobiles and piped natural gas (PNG) for
cooking and heating purposes in 22 cities, starting with
Pune, Agra, and Hyderabad. GAIL will run this business
in line with current structures in operation in cities
retailing GAIL has two operational JV''s in Delhi
(Indraprastha Gas) and Mumbai (Mahanagar Gas) with
BPCL and British gas.