The disinvestment would be both in the foreign markets (through the global depository receipts route) as well as the domestic market, Prasad said.

However, the exact proportion of shares to be sold in both markets would be decided once the core group of secretaries finalises the modalities for divestment, he said.

Prasad indicated that the disinvestment of shares would be done through the book building method where bidders in India and abroad, namely financial institutions, are asked to quote the price and the quantity of shares that each would like to purchase. The best bidder is allocated the shares.

Prasad said the size of the issue would more or less be the same as theoriginal proposal of about 800 million us dollars, which was shelved by the government in October last due to the unexpected crash of the international markets.

Prasad indicated that the lead managers for the issue would be the same as last year.

Prasad said GAIL would be handling projects worth Rs 9,000 crore during the Ninth Plan (1997-2002), some of which were nearing completion or had already been commissioned. Investments during the period would be around Rs 7,000 crores.

Two of the major projects are a 1235 km LPG (cooking gas) pipeline from Gujarat to Delhi's outskirts at a cost of Rs 1230 crore and expansion of the cracker capacity at the Rs 800 crore petrochemical complex in Gujarat from three lakh to four lakh tonnes.

Elaborating on expansion plans for the gas pipeline infrastructure, Prasad said the company had already initiated action for almost doubling the capacity of the HBJ system to about 60 million metric square cubic metres daily (MMSCMD).

This would be through a low cost optionof constructing another parallel line along the Hazira Vijaipur stretch.

GAIL had recently completed upgradation of HBJ pipeline capacity by 80 per cent at a cost of about Rs 2000 crore.

The doubling of HBJ pipeline can be accomplished in a period of three to four years to match the setting up of LNG terminal by Petronet LNG and would thus provide a reliable means for sale of imported LNG.

Similar pipelines in Mumbai and southern regions were under examination to tap the emerging markets in these areas, he said.

GAIL, one of the country's largest LPG producers, is set to increase its capacity to 1.80 million tonnes from the existing six lakh tonnes per annum. On company's future plans, Prasad said GAIL had formed a consortium with brown and root for developing a project for gas imports from the eastern region. Shell and cairn energy have also joined hands giving further strength to the consortium, he said.

Lng imports have become a necessity as there is a huge gap between demand and supply fornatural gas. By 2004-05, the demand for natural gas in the country is expected to touch 183 million cubic meters per day against the current projected availability of 68 million cubic meters per day from indigenous sources.

Referring to joint ventures, prasad said gail was in partnership with British Gas in mumbai for distribution of natural gas to domestic, commercial and transport sectors through "Mahanagar Gas".

Another was its teaming up with ongc, ioc and bpcl in petronet lng for import of lng into the country. Pletronet had already shortlisted suppliers of lng and detailed feasibility reports for setting up terminals at dahej and cochin were under preparation.

Prasad said another joint venture with BPCL, Indraprastha Gas Limited, was proposed to be formed to supply natural gas to domestic, commercial and transport sector in delhi.

On the company getting navaratna status, prasad said it had complied with the obligation of making the, vision statement for 2000 (giving details of its plans) and itwas now for the petroleum and industry ministry to hasten the process.