The Hindu Business Line : GAIL seeks nod for 230 new city gas projects

New Delhi, Sept 3 GAIL (India) Ltd has approached the Government with firm plans to seek approval for city gas distribution projects in 230 cities across the country. The company proposes to implement these projects in different phases and the cities short-listed include Tiruchi, Puducherry, Thanjavur, Cuddalore, Bangalore, Indore, Gwalior, Ujjain, Ahmedabad, Surat, Vadodara, and Kota.

The gas transmission and marketing company also intends to use the first mover advantage to strategic benefit in gas retailing and evolve a partnership- based business model with gas producers, the GAIL Chairman and Managing Director, Mr U.D. Choubey, said.

GAIL is already into the business of city gas distribution in cities that include Mumbai, Agra, Lucknow, Delhi, Pune, Hyderabad and Vijayawada.

Growth strategy

Talking about the company’s growth strategy, he informed shareholders at the 23rd annual general meeting here today that GAIL has worked on a strategy which would steer it to revenues of Rs 50,000 crore-plus by 2011 from revenues of Rs 16,047 crore in 2006-07. Describing the salient features of this multi-pronged strategy, Mr Choubey said that the company will focus on protecting and strengthening the core competencies of gas transmission, distribution and marketing businesses and shall pursue margin enhancing businesses namely, petrochemicals and city gas projects.

GAIL will also diversify downstream presence in gas based liquefied petroleum gas (LPG) and petrochemical plants. He added that GAIL will aggressively pursue gas sourcing options both from the new domestic sources as well as through international sources by way of pipelines and liquefied natural gas (LNG) route, to secure gas supplies for transmission and trading businesses.

To tap global opportunities

The company is also endeavouring to secure own sources of gas through participation on the exploration and production front and intends to participate aggressively in the upcoming E&P opportunities including NELP VII. Further, GAIL will be selectively pursuing global diversification opportunities in the areas having synergy with existing business, he added.

Regarding the company’s transmission infrastructure, he said GAIL 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.

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