GAIL plans Rs 2,000 crore gas project in Kerala
PTI, 06 Dec 2011 | 06:40 PM
KSIDC and Gail Gas have formed a joint venture to implement an Rs 2,000 crore supplementary gas infrastructure project in the state.
Kerala State Industrial Development Corporation (KSIDC) and Gail Gas have formed a joint venture to implement an Rs 2,000 crore supplementary gas infrastructure project in the state.
In the new venture, Kerala Gail Gas Ltd (KGGL) and Gail will have 26 per cent equity, while KSIDC will have 24 per cent stake. Remaining shares would be offered to financial institutions and strategic investors later, a KSIDC press release said today.
As per the feasibility report, the project cost is estimated at Rs 2,000 crore and the company's board, at its meeting here on December 3, approved the business plan prepared for the JV project, it added.
The plan includes promoting city gas distribution projects, laying of spur line, setting up of CNG stations for Kerala State Road Transport Corporation buses and boat services, marketing of gas related equipment and setting up of captive gas based power plants.
The CNG stations would be established in Kochi first since natural gas will be available here within one year time, the release said.
The conversion to CNG will make substantial improvements in the financial performance of KSRTC and will also make the fleet operation environment-friendly, it added.
KSRTC has a fleet of 6,000 buses now and the corporation will draw up a plan for conversion into CNG fuelled buses. For the CNG stations, the required space is proposed to be provided by KSRTC, wherein KGGL will install CNG dispensers, compressor and related facilities.
The JV company's first board meeting held here on Dec 3 appointed GAIL Gas Ltd Director and CEO, J Wason; Industries secretary and KSDIC Managing Director, Alkesh Sharma; KSIDC Executive Director, T P Thomas Kutty and General Manager (Construction), GAIL, A K Singh; as its Directors.
KGGL will also set up a Gas Training Institute near Angamally for which land would be provided by KSIDC.
The institute will be a skills development centre for technicians and others in the natural gas business and conduct short-term courses. The company also aims at promoting a gas-based power plant for the steel cluster at Palakkad jointly with the Steel Manufacturers Association.NDTV