GAIL mulls floating subsidiaries

November 19th, 2008 - 5:34 pm ICT by IANS  

New Delhi, Nov 19 (IANS) The state-run gas utility GAIL Ltd may float operations in several subsidiaries, the company said here Wednesday.“We need to move aggressively in various sectors. So we are thinking of having subsidiaries which will cover different areas like pipeline transmission, gas distribution, polymer production, city-gas distribution and foreign acquisitions,” GAIL chairman and managing director U.D. Choubey told reporters.

“We will need to make a decision on this within a year. After that it will be too late,” Choubey said.

GAIL, formerly Gas Authority of India, completed 25 years of operations Wednesday.

Choubey said GAIL is set to become a Rs.500-billion company in two years, adding: “In (another) 25 years, we would be a Rs.2,000-billion company.”

Referring to the economic slowdown, he said it has not yet impacted his company, saying GAIL had enough cash surplus.

In addition, he said, the drop in gas price had been offset by an increase in sales.

“We have calculated that we do not need any loans till 2009-end, by when we hope the situation will improve,” Choubey said.

According to him, the public sector company has a surplus of Rs.140 billion, and generates an annual surplus of Rs.40 billion.

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