The Hindu Business Line : GAIL to decide on bonus issue in 6 months

The board of GAIL India Ltd will take a decision on a bonus issue of shares within six months, Mr U.D. Choubey, Chairman, GAIL said. Speaking to newspersons here at the sidelines of the gas sales agreement (GSA) signing with Pragati Power Corporation Ltd (PPCL), he said, “within six months we are expecting a board decision”. The company will also seek shareholders’ approval for the same.

GAIL has inked a GSA with PPCL to supply 2 MMSCMD of regassified-liquefied natural gas. The gas supply for a 1500 MW combined cycle gas turbine power project to be set up by PPCL at Bawana will commence from October 2009, and the validity of this agreement will be till 2024. The plant is expected to be fully commissioned by October 2010 to supply power to Delhi before the Commonwealth Games.

Pipeline

Mr Choubey said, “Gas will be sourced from Petronet LNG Ltd and GAIL will be transporting it to PPCL for which a MoU has already been signed with Bharat Petroleum Corporation Ltd and Indian Oil Corporation Ltd.”

Further, to bring gas from Dadri to Bawana, pipeline with two compressors will be laid. A loop line will also be laid in the GREP pipeline system of GAIL. It will involve Rs 5,000 crore investment and this network will supply gas to other consumers also, he said. GAIL is confident to lay this pipeline synchronising with the power plant.

The re-gassified LNG shall be supplied to PPCL Bawana and the price of delivered gas will be in line with pooled price policy directive issued by Ministry of Petroleum and Natural Gas.

The peak demand for electricity in Delhi is slated to grow from the current 4100 MW to 5630 MW in 2010 as per the estimation of Central Electricity Authority. From the current generation of 1300 MW in Delhi, the Bawana Power Plant will go a long way in addressing the power shortage in the national capital.

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