Kolkata, Jan 21: The Gas Authority of India Ltd (Gail) has lined up investments worth Rs 9,500 crore in the next three years for development of pipeline infrastructure in the country. The investments would be financed mainly through internal accruals as the company is making enough profits, Gail chairman and managing director CR Prasad said.Stating that the company was the largest distributor of natural gas in the country, he said the debt-equity ratio was very low. In the last year, it has recorded a post-tax profit of Rs 861 crore on a turnover of Rs 8,415 crore. In the current year, the company is expected to notch a sales turnover of Rs 1,050 crore.
Asked if the government would go for further divestment in Gail's equity, Mr Prasad said the current government of India holding in the company was 67.3 per cent.
There was no possibility, he said, for further sale in the holding as Gail had been identified as a strategic PSU from the point of view of fuel security of the country. Its stock is currently listed on the London Stock Exchange.Giving the breakup of the inves tments, Mr Prasad said Rs 6,000 crore would be spent in expanding the LNG pipeline across length and breadth of the country. Another Rs 2,000 crore would be spent in setting up the LPG pipeline infrastructure from major refineries, Mr Prasad said.
(PTI)
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