Cabinet decides to rope in RIL for gas grid

Subscribe to Oneindia News

Hyderabad, Nov 10: Cabinet decided to enlist Reliance Industries Limited as a major stakeholder in the Krishna Godavari Gas Network Limited (KGGNL) to expedite the setting up of gas grid and supply of piped gas to various cities in the state.

Briefing mediapersons after a Cabinet meeting, chaired by Chief Minister Y S Rajasekhara Reddy, Information Minister A Ramanarayana Reddy said the Cabinet noted that only RIL was in a position to supply natural gas immediately. Gas supply from Gujarat State Petroleum Corporation (GSPC), originally held 26 per cent stake in KGGNL, may be delayed to at least 2011-12.

''The primary interest of the State government is to set up gas grid covering not only major cities, but also other municipalities in a phased manner,'' he said, adding, the RIL would hold 67 per cent equity in the KGGNL. The Infrastructure Corporation of Andhra Pradesh (INCAP), the Infrastructure Development Finance Corporation (IDFC) and GSPC would hold 11 per cent each.

The Petroleum and Natural Gas Regulatory Board (PNGRB), constituted by the Centre has already received bids from Reliance Gas Co Ltd to lay the distribution network in Hyderabad, Vijayawada, Visakhapatnam, Kakinada, Tirupati and Rajahmundry.

UNI

Please Wait while comments are loading...