Gail (India) Ltd has forged a joint venture with Indian Oil Corporation (IOC) for gas distribution in Kolkata and other towns, chairman and managing director of the company U D Choubey said on Thursday.
Choubey told reporters the new company would be incorporated shortly, and the estimated investment would be around Rs 500 crore.GAIL and IOC would hold 22.5 per cent each. Other equity partners are West Bengal government (five per cent) and financial institutions (50 per cent).
Choubey said gas distribution would be possible only after completion of Jagdishpur-Haldia pipeline in 2011.In the meantime, GAIL would make efforts to source coal bed methane (CBM) from the Asansol region, following which it would be distributed in cylinders after compression. He said piped natural gas was cheaper than LPG sold in cylinders.
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