GAIL to invest Rs.20,000 crore on pipeline network in south India

GAIL to invest Rs.20,000 crore on pipeline network in south India

GAIL (India) Ltd, the country’s largest gas transmission and marketing company, will invest around Rs.20,000 crore over the next five-six years to build a gas pipeline network in south India. B.C. Tripathi, chairman and managing director, said the company would, along with its partners, also pump in Rs.3,000 crore to augment the city gas distribution network. GAIL sold a 12.5 per cent stake in Mahanagar Gas Ltd (MGL) in the latter’s initial public offering (IPO), reducing its holding to 32.5 per cent. “The proceeds from the IPO will go into the central account of GAIL and will be used in expansion of our businesses,” Tripathi said at MGL’s listing ceremony. “We have a city gas distribution in Bangalore where we will need to make investments. There is huge investment happening in Bangalore. Haridwar and Goa are new areas that have been authorized to us. These areas will see investment.” GAIL is also building a 1,104km gas pipeline that will traverse across Kochi, Koottanad, Bangalore and Mangalore. GAIL’s concern has been about finding major anchor customers for gas in the region.

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