Business

GAIL, HPCL mull marketing tieup in A.P.

By Our Special Correspondent

HYDERABAD FEB. 19. The Gas Authority of India Limited (GAIL) and the Hindustan Petroleum Corporation Ltd. (HPCL) have signed an MoU for setting up a joint venture, tentativley named `Bhagyanagar Gas Limited', to distribute and market environment friendly fuels _ natural gas, auto LPG and piped gas in Andhra Pradesh cities.

The equity of the JV is expected to be around Rs. 100 crores, while the project may entail investments of Rs. 700-1,000 crores over eight years, according to Proshanto Banerjee, CMD, GAIL, and N. K. Puri, Director (Marketing) HPCL.

While GAIL and HPCL will have a 22.5 per cent stake each, the State Government has been given the option of subscribing to a 5 per cent stake. The balance will be offered to financial institutions. The proposed JV will distribute natural gas for residential and commercial segments, LPG auto fuel, and CNG or any other fuel as may be permitted by the Union Government.

Mr. Banerjee said at a press conference on Tuesday that they could not set any timeframe nor spell the roll out plans as things depended on infrastructure development and assured availability of natural gas. A 600 km Rs. 490 crore pipeline is being laid from Vizag to Secunderabad by GAIL.

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