British Gas to set up wholly-owned subsi in India

New Delhi, Apr 10 (UNI) UK energy major British Gas is planning to set up a wholly-owned arm -- BG India Energy Solutions -- to foray into marketing and distribution of natural gas in the country.

The company plans to procure gas from domestic and imported sources, including re-gassified LPG in India, an official said.

BG has received a conditional approval from its joint venture partner GAIL (India). However, the proposed subsidiary would be debarred from entering the city gas distribution business as it would be in conflict with the interest of the two companies' existing JV Mahanagar Gas LTD (MGL).

The BG group has 65.12 per cent equity stake in Gujarat Gas Company (GGCL) and 49.75 per ecnt stake in MGL. While GGCL is engaged in city gas distribution in Gujarat, MGL has natural gas distribution network in Mumbai and Greater Mumbai.

UNI