GAIL targets Rs 50,000 cr revenue by 2011

New Delhi, Sept 3: GAIL (India) Ltd today said it expects a revenue of Rs 50,000 crore by 2011 from Rs 16,047 crore in 2006-07 by strengthening its current business and pursuing new exploration opportunities.

GAIL's Chairman and Managing Director U D Choubey while addressing the company's shareholders at the Annual General Meeting here said, ''GAIL will aggressively pursue gas sourcing options both from the new domestic sources as well as through international sources by way of pipelines and LNG route, to secure gas supplies for transmission and trading businesses.'' Dr Choubey said the company will pursue margin enhancing businesses namely, petrochemicals and city gas projects.

The company intends to use first mover advantage to strategic benefit in gas retailing and evolve a partnership based business model with gas producers, he said.

Similarly, the company shall diversify downstream presence in gas based LPG and Petrochemicals plants.

The company will also endeavour to secure own sources of gas through participation on the E&P front and intends to participate aggressively in the upcoming E&P opportunities including NELP VII.

GAIL, he said, is moving ahead in a time bound manner to complete the eight new gas pipelines in two phases, targeting 100 per cent completion by 2011.

These will form part of an integrated gas grid in the country, spread over more than 5,000 Kms at an estimated capital expenditure of Rs 20,000 Crore.

''It would increase GAIL's Natural Gas Transmission capacity to around 300 MMSCMD and almost double GAIL's existing trunk pipeline network to nearly 12,000 Km,'' Mr Choubey said.

GAIL is also in active discussions with international suppliers for gas sourcing in addition to tying up domestic supply sources, he said.

GAIL has recently approached the government with firm plans for granting approval to pursue city gas projects in 230 cities across the country, Mr Coubey said.

The company is making active efforts towards establishing two gas based petrochemical plants outside India.

In the area of Petrochemicals, he said, the Brahmaputra Cracker and Polymer Ltd in Assam, has been formed as a subsidiary of GAIL with 70 per cent equity stake.

Further, GAIL will be selectively pursue global diversification opportunities in the areas having synergy with existing business.

Dr Choubey said, ''Towards implementing this strategy, GAIL is focusing on leveraging the potential of its human resources through specific measures to train, motivate and channelise them towards the organisational goals.'' GAIL believes in and is actively pursuing the philosophy of cooperation and collaboration in the energy sector.

Accordingly, GAIL has taken numerous steps to forge new relationships, cement existing ones and collaborate within the hydrocarbon industry and beyond, with the private as well as public sector, he added.

GAIL is also expanding the capacity of the Pata Petrochemical plant to 410,000 TPA from the present 310,000 TPA, Dr Choubey said.

The company's net profit for 2006-07 was Rs 2,387 crore as against Rs 2,310 crore in the previous year.

UNI