GAIL plans to invest Rs 5,887 crore in national gas grid
Our Corporate Bureau
25 September 2006
Mumbai: GAIL (India) Ltd proposes to set up a nationwide gas grid involving Rs 5,887 crore investments over the next five years. The company has already submitted plans for setting up eight trunk lines to the petroleum ministry.
The proposed trunk lines are: Auriya-Jagdishpur- Haldia pipeline, Dadri-Nagal line, Kakinada-Hyderabad, Bangalore-Kochi and Bangalore-Chennai line, Myanmar-Mizoram- Assam-Bihar pipeline, Kolkata-Kakinada-Chennai line and Dabhol-Bangalore-Kochi line.
GAIL is reported to be in talks with Reliance Industries, Oil and Natural Gas Corporation (ONGC), Gujarat State Petroleum Corporation (GSPC), and Cairn Energy to transport gas found in eastern offshore region to markets in the north, west and south. The grid will supply natural gas to West Bengal, Bihar and Orissa, along with industries near Bangalore, Chennai, Cochin and Hyderabad.
The petroleum ministry, meanwhile, has suggested that GAIL tie up gas supplies and downstream customers before beginning work on the pipeline projects.
State-run GAIL (India) Ltd, (formerly Gas Authority of India Ltd) set up as a gas transmission and marketing company, has expanded into gas processing, petrochemicals, liquefied petroleum gas transmission and telecommunications. The company has also a presence in power, liquefied natural gas re-gasification, city gas distribution and exploration and production through equity and joint ventures. GAIL ranked among the top 10 Indian companies with profits and revenue of Rs 11,942 crone ($ 2.6 billion) and net profit of Rs 1,869 crore ($ 4.6 million) for the year 2003-04.