The Hindu Business Line : Reliance mulls using gas pipelines to support cold storage chain

Advertisement

Hyderabad, Feb. 26 Reliance Industries Ltd (RIL), which is setting up a network of pipeline grid criss-crossing the country, is considering the option of using this network to support a large cold storage chain for its retail business.

The Managing Director of Reliance Gas Transportation Infrastructure Ltd, Mr R.K. Dhadda, said that the East-West gas pipeline from the KG basin in Andhra Pradesh would pass through four States and the Eastern pipeline corridor, for which the company recently received Government nod, would reach out to Haldia in West Bengal.

These two big pipeline corridors would be complemented by a chain of pipeline projects extending up to Mangalore in South.

As a part of the corporate strategy, the company would create a secondary network of pipelines for gas supplies providing last mile linkages, Mr Dhadda said. They expect to create a chain of cold storage networks in procurement hubs. The cold storage centres would serve as resource centres for farmers and regional sourcing hubs and warehouses.

Speaking at a one-day meet on natural gas and petrochemical Infrastructure development here, Mr Dhadda said "the Reliance group has a proven track record of large-scale implementations such as a 60,000-km optical fibre network in less than 24 months and we expect to repeat such a feat with the gas pipeline grid in a phased manner across several States in western, southern and eastern regions by mid 2008."

"Interestingly, we are not looking at financial viability alone for support infrastructure in the case of cold storages. Though some of such projects may require investments from our side, we would go ahead. In a project of such magnitude where billions of dollars are being invested in exploration and gas grid, we expect to make up from other businesses," he said.

Referring to the last mile issues and pricing mechanism, Mr Dhadda said that they expect to enter into State-wise or local relationships for the supply of gas through the grid.

Asked if they plan to sign up with gas-starved power projects, Mr Dhadda said pricing was a regulatory matter and once this was resolved, they would be able to sign up with bulk users of gas. Unlike electricity, transmission and distribution losses for gas are negligible.

More Stories on : Outlook | Retailing | Petroleum | Storage | Reliance Industries Ltd

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page