GAIL lines up Rs 9,500 cr investments

GAIL lines up Rs 9,500 cr investments

Kolkata, Jan 21: The Gas Authority of India Limited (GAIL) has lined up investments worth Rs 9,500 crore in the next three years for development of pipeline infrastructure in the country.

Asked if the government would go for further divestment in GAIL's equity, Prasad said the current GoI holding in the company is 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. GAIL's stock is currently listed on the London Stock Exchange.

He said Rs 2000 crore would be spent in setting up theLPG pipeline infrastructure from major refineries, Prasad said.

The company, which is in the process of making its presence felt in the eastern region, is also studying the feasibility of constructing a LPG pipeline from Haldia in West Bengal to Kolkata and other destinations.

For this purpose, the company would sign a gas cooperation agreement with the West Bengal Industrial Development Corporation soon and the investment requirement is around Rs 500 crore.

The company also plans to bring LNG to West Bengal through the proposed National gas grid.

On the telecom initiatives, Prasad said the company has entered the business as category II infrastructure provider for basic operators.

The company has also signed an MoU with Power Grid Corporation of India for creating the National backbone for providing bandwidth capacity.

On telecom initiatives, GAIL would spend around Rs. 1000 crore, he said.