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GAIL (India) Ltd on Monday signed an agreement with the Municipal Corporation of Vadodara to set up a joint venture for gas distribution in the city and its adjoining areas.
The joint venture will have an authorised share capital of Rs 100 crore.
Funding pattern
GAIL, through its wholly-owned subsidiary, GAIL Gas Ltd, will hold 26 per cent equity, while Vadodara Mahanagar Sevan Sadan (VMSS) will have 24 per cent equity.
The balance 50 per cent will be held by financial institutions and strategic partners.
The proposed venture has a total capital expenditure plan of about Rs 150 crore in the first five years and about Rs 170 crore will be invested for further expansion.
At present, GAIL has six CNG stations in Vadodara and supplies more than 30,000 kg to cater to over 4,000 vehicles.
Win-win proposition
Speaking on the occasion, Mr B.C. Tripathi, Chairman and Managing Director, GAIL, said, “Let us give precedence to the city which gave birth to GAIL and develop this JV as a model project to run purely as a commercial organisation which should be a win-win proposition for both the consumer as well as the supplier.”
VMSS has laid pipelines to connect about 75,000 houses for piped natural gas.
Through this company, it plans to connect another 85,000 households in the coming years.
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