The Hindu Business Line : GAIL gets shareholders nod for bonus issue of 1:2

New Delhi, Sept. 4 The public sector gas transmission and marketing major, GAIL (India) Ltd, today got its shareholders nod for issuance of bonus share in the ratio of 1:2 (one bonus share for every two shares held). The company got the shareholders nod at its annual general meeting (AGM) held here.

The GAIL Chairman and Managing Director, Mr U.D. Choubey, while seeking investors nod said “the Board of the company has recommended the maiden bonus issue by giving one bonus share for every two equity shares held. The authorised share capital of the company is proposed to be increased from Rs 1,000 crore to Rs 2,000 crore.”

On the physical front the company is planning to further augment the capacity of its Pata Petrochemicals Unit from 4,10,000 tonne per annum (tpa) to 5,00,000 tpa and gradually going up to 8,00,000 tpa, he said, adding that “the increased production of polymers at Pata shall further add values to the company.” Mr Choubey, however, did not give any time frame for capacity expansion.

“Considering petrochemicals as the second most important business after natural gas and in order to strengthen the same, GAIL has jointly assessed areas in North Asia and CIS states for setting up mega petrochemical complex through public-private participation,” he said.

Recently, GAIL partnered with private sector Reliance Industries Ltd (RIL) to scout for petrochemical projects overseas, mainly in areas where the feedstock – gas – is available.

Elaborating on other business initiatives and future plans, Mr Choubey, said the company will invest Rs 20,000 crore in raising the pipeline handling capacity to over 300 million standard cubic metres a day of gas by 2011-12. Five new trunk pipelines and two capacity augmentation projects are moving forward rapidly for timely completion, he said adding, “This will enable the company to continue and consolidate its dominant position in the gas transmission and marketing segment.”

On the city gas distribution business, Mr Choubey said, the company has recently formed a wholly owned subsidiary GAIL Gas Ltd for gas distribution including CGD and compressed natural gas corridor projects.

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