GAIL to incur Rs 8,000 cr on new gas pipelines

NEW DELHI: Gas utility GAIL India Ltd on Monday said it will invest Rs 8,000 crore for laying three new gas pipelines by 2012.

GAIL will lay the pipelines to connect gas sources to consumers in North India, who till now have no access to the environment friendly fuel, company Chairman and Managing Director U D Choubey told reporters here.

"The company board at its meeting in Shimla on July 25 approved investment in the three pipeline projects totaling 2,400 km in length and are scheduled for completion in 2012," Choubey said.

After the three pipelines, besides the ones on which construction is already on, would more than double GAIL's pipeline network to 14,400 km. The pipelines would have a capacity to transport 280 million standard cubic metres of gas per day.

GAIL will lay 2,050-km pipeline from Jagdishpur in Uttar Pradesh to Haldia in West Bengal at an investment of Rs 7,595 crore, Choubey said. The project would also involve laying separate spur lines to Baurani and Chappra. GAIL will also invest Rs 250 crore in laying a 275 km Karanpur-Moradabad-Kashipur-Rudrapur pipeline.

Besides, the existing Bajera-Agra-Ferozabad pipeline would be upgraded at an investment of Rs 200 crore, he said.