GAIL to consider bonus issue in 2-3 months

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New Delhi, Mar 11 (UNI) State-run gas transmission company GAIL today said it will consider a proposal to issue bonus shares in 2-3 months.

The company also plans to double spending in 2008-09 to Rs 4,200 crore, GAIL CMD U D Choubey said.

He said GAIL's board has recently approved doubling its authorised capital to Rs 2,000 crore, a move necessary before it can issue expected bonus shares.

''Second step is to take board approval for bonus issue so that it can be placed before the shareholders at the annual general meeting. In 2-3 months time, the board will take up the issue,'' he said.

In the current fiscal year ending March, the company's capital expenditure would be Rs 2,300 crore, Mr Choubey said and added that next year the figure will be doubled.

''Capex is high because we plan to lay about 2,000 km of pipeline by 2009/10. Soon we will place orders,'' he said.

Director of Finance Raj K Goel said the network expansion projects would necessitate GAIL borrowing Rs 1,000 crore in the next fiscal.

He, however, did not say whether this would be done at home or overseas.

GAIL plans to add 5,500 km to its existing pipeline network of 6,400 km by 2012.

Mr Goel said the Ratnagiri Gas and Power Pvt Ltd, in which Gail and NTPC both hold 28.33 per cent stake, may come out with a Rs 1,000 crore initial public offer (IPO) in the October-December quarter.

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