GAIL to double pipeline network, to raise Rs 7,000 cr by 2011

New Delhi, Sep 18 (UNI) To double its pipeline network by 2011, Gas Authority of India Ltd (GAIL) today said it plans to raise up to Rs 7,000 crore (1.72 billion dollars) from domestic and foreign markets.

The expansion of the pipeline to 12,000 km will cost Rs 20,000 crore, company's Director (Finance) R Goel said here.

''Of the total borrowings, around 30 per cent will be through foreign loans and remaining through domestic markets,'' he said.

Mr Goel added that the foreign loan may rise to 40 per cent, provided the government relaxes a cap on external commercial borrowing.

Speaking on the gas distribution projects in China and India, GAIL will soon form a 50:50 joint venture in Bermuda, he said.

To fund GAIL's expansion plans, the company may also go for selling a part of its stakes in Oil and Natural Gas Corporation (ONGC) and China Gas Holding Ltd.

At present, GAIL owns 2.4 per cent of ONGC and 6.6 per cent of China Gas Holding Ltd.

UNI