GAIL to help state lay natural gas pipelines | mumbai | Hindustan Times
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GAIL to help state lay natural gas pipelines

mumbai Updated: Feb 26, 2010 02:00 IST
Dharmendra Jore
Dharmendra Jore
Hindustan Times
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The state government will collaborate with GAIL (India) Ltd for supplying a cheaper source of energy, natural gas, to industries across the state.

GAIL, India’s flagship natural gas company has a wide network including some trunk (main) pipelines that bring the gas from the gas fields.

It explores the gas, processes and transmits clean fuel for industrialisation.

Industry Minister Rajendra Darda told Hindustan Times that the Maharashtra Industrial Development Corporation (MIDC) decided to form a joint venture with GAIL on Monday at its board meeting. “The partners will have a 50:50 stake in the new company.”

MIDC will help GAIL experts build a network of smaller pipelines that will connect trunk lines with its more than 250 industrial estates in the state.

Hindustan Times had reported on February 22 that the state would choose a partner for the venture this week.

A senior official, requesting anonymity, said the MIDC would have to make financial arrangements for the venture and also get the Cabinet’s nod.

GAIL officials were unavailable for comment.

Natural gas is used as a feedstock for the production of synthetic fuels, and coal gas as an industrial and domestic fuel. Industrial units can use natural gas to run captive power plants in case of power crisis.