GAIL to form joint venture to supply gas to KarnatakaJune 8th, 2011 - 10:43 pm ICT by IANS
Bangalore, June 8 (IANS) State-run Gas Authority of India Ltd (GAIL) Wednesday entered into an agreement with the Karnataka State Industrial & Infrastructure Development Corporation Ltd (KSIIDC) to form a Rs.100-crore joint venture for supplying piped gas to Bangalore and other cities across the state.
In the proposed joint venture, to be set up under the public-private partnership, GAIL and KSIIDC will have 26 percent and 24 percent equity stake respectively while financial institutions, strategic partners and investors will jointly hold the balance 50 percent equity.
“The joint venture company will set up natural gas infrastructure in industrial estates and clusters, city gas distribution networks and distributed power generation projects in industrial areas across the state,” GAIL executive director J. Wason said in a statement.
The distribution networks will supply piped gas to homes, compressed natural gas (CNG) to commercial and passenger vehicles and fuel to industrial estates in Bangalore and other cities across the state.
As strategic partners, GAIL will bring its expertise, technology, skilled manpower and its gas sourcing capabilities to the venture, while KSIIDC will facilitate the setting up of industrial estates and clusters by business enterprises.
“The agreement will give thrust to various natural gas related activities in the state and associated projects will be executed on a fast-track basis to supply piped gas to multiple end-users, especially to millions of households,” KSIIDC managing director Raj Kumar Khatri said.
GAIL is concurrently implementing the 1,413-km Dabhol-Bangalore pipeline at Rs.5,000 crore to carry 16 million metric standard cubic metres (mmscm) of gas per day and the 1,114-km Kochi-Mangalore-Bangalore pipeline at Rs.3,300 crore to carry another 16 mmscm of gas per day.
Both these pipelines are scheduled to be completed by 2013.
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