GAIL & Karnataka govt sign agreement on two gas pipeline project

BANGALORE: Gas Authority of India Ltd and the Karnataka Government on Wednesday signed a Gas Co-operation agreement under which GAIL will lay two gas pipelines to the state from Dhabol and Kochi.

"The survey work is already completed and we expect the Rs 6,000 crore project by 2012" GAIL Chairman and Managing Director Dr U D Choubey told reporters here.

The Dhabol-Bangalore and Kochi-Bangalore gas pipeline covered a 800 km stretch and the demand survey carried out a few years ago was being updated, he said.

GAIL now has to acquire ROU (Right of Use) from the regulatory authority and notify it, Choubey said, but could not indicate when the work on laying the pipeline would begin.

The project was being solely funded by GAIL, he said adding that the company currently had Rs 10,000 crore surplus fund and generated Rs 2,000 crore every yaer.

The Dabhol-Bangalore gas pipeline will be designed to carry 16 million metric square cubic metres per day (MMSCD) of gas and similar would be the capacity of the Kochi-Bangalore line, he said.