GAIL-HPCL sign JV agreement for city gas projects
GAIL India and Hindustan Petroleum Corp (HPCL) on Thursday signed an agreement to set up a joint venture company for retailing natural gas to households and CNG to automobiles in Rajasthan.
By PTI |
NEW DELHI: GAIL India and Hindustan Petroleum Corp (HPCL) on Thursday signed an agreement to set up a joint venture company for retailing natural gas to households and CNG to automobiles in Rajasthan.
The joint venture company will take up City Gas Distribution projects in the state and enable use of Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) in cities for automotive and domestic use.
GAIL and HPCL will hold 22.5 per cent stake in the joint venture company while five per cent will be offered to state government or its nominee. The balance 50 per cent will be held by strategic investors, public or financial institutions.
The company will start its operations in Kota for which the Detailed Feasibility Report (DFR) has already been prepared by GAIL.
GAIL's Vijaipur-Kota pipeline is already operational and the Kota city gas project will source its gas though this pipeline.
GAIL Chairman U D Choubey said city gas distribution will be the next high growth area in gas markets.
He recalled the success story of Bhagyanagar Gas Ltd, the GAIL-HPCL JV in Andhra Pradesh, and hoped that the JV company for Rajasthan would blaze a similar trail of success.
The joint venture agreement was signed by GAIL Director (Business Development) A K Purwaha and HPCL Director (Marketing) S Roy Choudhury.
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