Global crisis not to affect GAIL's multi-crore plans: CMD

NEW DELHI: State-run gas utility GAIL India on Friday said its Rs 30,000-crore expansion plans will not be affected by global financial crisis, as it has enough internal resources to meet the requirements.

"GAIL has sufficient internal resources to fund our investment plans," GAIL Chairman and Managing Director U D Choubey said at an industry conference here.

The gas monopoly plans to invest about Rs 30,000 crore in laying new pipelines, expanding capacity of its petrochemical plant and setting up city gas distribution projects in the country over the next five years.

"We have cash reserves of about Rs 15,000 crore and we are generating Rs 3,500 crore cash surplus every year," he said, adding, "Projects in pipeline will not be affected in any way."

GAIL, under Choubey, has embarked on the ambitious plan to lay a criss-crossing natural gas pipeline grid to connect gas sources with consumption centres.

The company is also expanding its Pata petrochemical unit as well as looking at setting up a mega chemical plant overseas. Besides, it has identified several cities across the length and breath of the country to set up networks to sell compressed natural gas (CNG) to automobiles and piped natural gas to households and commercial users.