GAIL, HPCL signs JV for city gas projects in Rajasthan

New Delhi, May 18 (UNI) The state-owned Gail India Ltd (GAIL) and Hindustan Petroleum Corporation Ltd (HPCL) have signed a Joint Venture (JV) agreement for City Gas Distribution projects in Rajasthan.

The agreement was signed by the two companies yesterday.

GAIL and HPCL will have 22.5 per cent equity holding in the JV while the state government or its nominee will have five per cent and strategic investors or public and financial institutions will have 50 per cent holding, a GAIL statement said today.

The JV company will take up City Gas Distribution projects and enable use of Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) in cities of Rajasthan for automotive and domestic use.

'' The city gas distribution is going to be very competitive business,'' GAIL's CMD U D Choubey said.

He also called upon the officials of the two companies to move fast and expedite further implementation of the city project to ensure that the JV fully exploits the first mover advantage.

The JV company will start its operations in Kota for which the Detailed Feasibility Report (DFR) has already been prepared by GAIL.

This will be the third JV of GAIL and HPCL and the ninth JV of the GAIL for city gas distribution projects in the country. The two companies have set up Bhagyanagar Gas Ltd and Avantika Gas Ltd for city gas distribution projects in Andhra Pradesh and Madhya Pradesh respectively.

UNI