New Delhi, May 13
GAIL (India) Ltd and Indian Oil Corporation Ltd (IOC) have signed a joint venture agreement for implementation of city gas projects in Agra and Lucknow.
The agreement was inked by Mr Proshanto Banerjee, Chairman and Managing Director, GAIL and Mr Sarthak Behuria, Chairman, IOC.
The signing of the joint venture agreement has cleared the way for formation of a joint venture company for supply of compressed natural gas (CNG) and piped natural gas (PNG) in these two cities.
The new joint venture company will commence supply of CNG to automobiles in the cities of Lucknow and Agra by end December 2005. Initially, it shall supply natural gas to 1,000 domestic, 20 commercial and 16,600 automobile consumers in Agra and shall supply natural gas to 1,000 domestic, 62 commercial and 1,950 automobile consumers in Lucknow. The proposed joint venture company shall set up seven CNG stations in Agra and two in Lucknow in a phased manner.
City gas distribution projects have been successfully implemented in Delhi and Mumbai under joint venture operations that are supplying PNG and CNG to retail customers, including domestic, commercial, industrial and automobiles.