There is more capital investment ahead for state-controlled gas transporter GAIL (India) Ltd. The company said on Monday its board had approved an investment of about Rs 8,000 crore on new pipeline projects due for implementation by 2012.
These include a planned pipeline which would involve the single largest investment by GAIL so far, connecting Jagdishpur in Uttar Pradesh with Haldia in West Bengal. The 2,050-km pipeline is estimated to cost Rs. 7,600 crore.
Chairman and Managing Director U.D. Choubey told HT that GAIL’s new lines will help bring the environment-friendly fuel to North Indian consumers.
"The company board at its meeting in Shimla on July 25 approved investment in the three pipeline projects totalling 2,400 km in length," Choubey said.
The three projects would more than double GAIL's pipeline network to 14,400 km. When they are complete, GAIL will have the capacity to transport 280 million standard cubic metres of gas per day.
Besides, the Jagdishpur-Haldia pipeline, GAIL will also invest Rs 250 crore in laying a 275 km Karanpur-Moradabad-Kashipur-Rudrapur pipeline. The existing Bajera-Agra-Ferozabad pipeline would also be upgraded at an investment of Rs 200 crore.
The projects will be funded largely by debt, said GAIL’s director (finance) R.K. Goel. GAIL will raise Rs. 2,000 crore from the domestic market in the current fiscal, follwed by Rs. 5,000 crore at home and abroad in 2010/11 and Rs. 10,000 crore the following year, he said.