November 22, 2008

GAIL to take up distribution projects in 17 cities

GAIL (India) Limited has recently floated a 100% subsidiary called GAIL Gas Limited to take up city gas distribution projects in 17 cities in the first phase. It has identified 230 cities for city gas distribution projects in phased manner.

The city gas distribution in the first phase will be taken up through its subsidiary company, in authorization from Petroleum & Natural Gas Regulatory Board. The subsidiary company has already been registered with an initial equity of INR 200 crore. Corresponding to this equity amount, debt shall be arranged amounting to INR 300 crore.

GAIL Gas will also take up the compressed natural gas corridor project, which involves an estimated capital outlay of INR 35 crore for setting up CNG stations along the highways.