Puducherry, Dec 10(UNI) The Gas Authority of India Limited (GAIL) and Puducherry Government today signed an agreement for supply of gas to sectors such as transport and power.
Talking to newspersons here after the agreement was inked between the Industries Department and GAIL, Industries Minister V Vaithilingam said a feasibility report would be prepared by GAIL in a year and Rs five crore invested initially in the project.
After preparing the feasibility report, GAIL would open outlets, to supply gas to transport sector.
Gas was available in Narimanam Field at Bhuvanagiri and recently, it was found in the Bay of Bengal off Puducherry Coast, he added.
GAIL Chairman and Managing Director U D Choubey said the agreement was for utilisation of gas in the areas of transport, domestic cooking, power and developmental projects.
Dr Choubey said a 60-km pipeline had been laid here and further laying of pipelines would be considered depending on the availability of gas.
The Government had expressed its desire to increase the capacity of the power plant at Karaikal from 32.5 MW to 100 MW for which GAIL would supply the gas.
The agreement also envisaged a joint exercise for assessment of the demand potential for natural gas in the Union Territory and promote its usage.
The areas of cooperation include pipeline infrastructure for distribution of natural gas, liquid hydrocarbons, LPG and promotion of joint ventures for supply of cooking gas and in transport sector.
GAIL Director (Marketing) B C Tripathi and Industries and Commerce Secretary T M Balakrishnan signed the agreement in the presence of Lt Governor Mukut Mithi.
Minister for Education M O H F Shajahan was among those present on the occasion.