Gail Gas submits EoI to set up distribution network in 7 cities

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New Delhi, Jul 6 (UNI) GAIL Gas Ltd (GGL) plans to set up city gas distribution network in seven cities mostly tier II and tier III all over the country.

The firm, set up in May this year, has submitted the Expression of Interest (EoI) in this regard to the Petroleum Ministry, GAIL India Chairman and Managing Director U D Choubey told UNI.

He informed that GGL Board of Directors had recently taken a decision in this regard recently.

The cities, where the network distribution is to be set up, include Gwalior and Dewas in Madhya Pradesh, Ghaziabad, Mathura and Jhansi in Uttar Pradesh, Sonipat in Haryana, and Kota in Rajasthan.

Besides, the company has also sought from the government permission to set up distribution network in another 20 cities, Dr Choubey said.

Gail India, the largest gas transmission company with marketing network of about 7,000 kilometres long, had set up its wholly-armed subsidiary with an initial capital base of Rs 200 crore.

GGL plans to raise Rs 300 crore debt from banks and financial institutions to fund expansions in city gas distribution networking and other future initiatives of parent company, Dr Choubey said.

GGL is a wholly owned subsidiary of state-run GAIL India, of which Mr U D Choubey is an ex-officio Chairman.

After gas transmission, the city gas distribution is another business with exciting prospects, he said, ''The next decade belongs to city gas distribution and the newly constituted arm will focus on new vertical.'' GGl was formed to undertaking the city gas distribution business in cities apart from the distribution of CNG for vehicles and setting up a CNG corridor.

GAIL India had identified 230 cities contiguous to existing and proposed pipelines for city gas distribution, which is to be completed in a phased manner.

UNI SBA SG MP RAI1134

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