Projects Today reported that GAIL India plans to invest INR 7,600 crore on 2 pipeline projects linking Karnataka to the National Gas Grid.
GAIL's project involves laying a 1,389 kilometer pipeline from Dabhol in Maharashtra to Bangalore entailing an investment of INR 4,543 crore. The design capacity of the 30 inch diameter Dabhol-Bangalore section is 16 million metric standard cubic meters per day and the project is likely to be implemented in 2 phases.
In part A of Phase I, around 402 kilometer pipeline is to be laid from Dabhol to Gokak along with spurlines to Belgaum and Goa at an estimated investment of INR 1,593 crore and is scheduled to be completed by 2011-12. In part B of the Phase I, around 570 kilometer pipeline is to be laid from Gokak to Bangalore along with spur lines or feeder lines to Bangalore at an estimated investment of INR 2,464 crore and is scheduled to be completed by 2012-13.
In Phase II of the project, 417 kilometer spur lines or feeder lines are to be laid to Ratnagiri, Kolhapur, Sangali, Bijapur, Dharwad, Devangere, Harihar and Tumkur at an estimated cost of INR 486 crore and is scheduled to be completed by 2013-14.
For the second project, 1,114 kilometer Kochi-Kanjirkkod-Bangalore-Mangalore pipeline, an outlay of INR 3,032 crore has been approved. The design capacity of this pipeline is 16 million metric standard cubic meters per day including 4 million metric standard cubic meters per day as common carrier and the project is to be implemented in two phases.
In Phase I, 96 kilometer pipeline is expected to be laid from Kochi to Alwaye with spur lines or feeder lines to Alwaye, Udyogmandal, Binannipuram, Ambalamedu at an estimated investment of INR 267 crore. The Phase I is scheduled to be completed by 2011-12.
In Phase II of the project, 1,018 kilometer pipeline is to be laid from Alwaye to Kanjirrkkod, Kanjirrkkod to Mangalore and Kanjirrkkod to Palghat/ Palakkad with spurlines or feeder lines to Thrissur, Kottakal, Kozhikode, Kannur, Mangalore and Palakkad. This involves laying of pipeline from Palakkad to Bengaluru with spurlines or feeder lines to Coimbatore, Trippur, Truchengode and Salem. The second phase is likely to entail an investment of INR 2,765 crore and is slated to be completed by 2012-13.
Meanwhile, the projects are likely to be funded through a 70:30 debt equity ratio. GAIL is expected to bring in 30% of the funding requirements while discussions were on, with financial institutions and banks for meeting the remaining funding requirements.
