GAIL Gas applies for retail distribution licence

GAIL Gas applies for retail distribution licence
PTI
Comment E-mail Print Share
First Published: Tue, Jun 03 2008. 10 48 PM IST

On the way: A CNG gas station in Delhi. GAIL Gas has applied to the petroleum regulatory board to begin retailing CNG to automobiles and supply piped gas to households and industrial units. Photograph
On the way: A CNG gas station in Delhi. GAIL Gas has applied to the petroleum regulatory board to begin retailing CNG to automobiles and supply piped gas to households and industrial units. Photograph
Updated: Tue, Jun 03 2008. 10 48 PM IST
New Delhi: The city gas distribution subsidiary of state-run GAIL (India) Ltd, GAIL Gas Ltd has applied for a licence on Tuesday to set up compressed natural gas, or CNG, stations and piped gas network in six cities.
On the way: A CNG gas station in Delhi. GAIL Gas has applied to the petroleum regulatory board to begin retailing CNG to automobiles and supply piped gas to households and industrial units. Photograph: Harikrishna Katragadda / Mint
GAIL Gas has applied to the Petroleum and Natural Gas Regulatory Board to begin retailing CNG to automobiles and supply piped gas to households and industrial consumers in Gwalior, Jhansi, Mathura and Ghaziabad in Uttar Pradesh, and Jhajjar and Hissar in Haryana.
GAIL Gas was registered last week as a limited company under the Companies Act, 1956. GAIL will chip in with an initial equity of Rs200 crore in the subsidiary, while another Rs300 crore would be debt.
GAIL had said on Monday that setting up the subsidiary would help it seperate its gas transmission and marketing businesses.
GAIL Gas’ board shall initially comprise of five directors including a managing director. It will take up distribution and marketing of CNG as fuel for vehicles, and supply piped natural gas for domestic, commercial and industrial purposes.
“The new subsidiary will also take up the CNG corridor project, which involves an estimated capital outlay of Rs35 crore for setting up CNG stations along the highways,” the company had said in a statement.
The subsidiary would also form alliances with gas producers and strategic partners to implement city gas projects. GAIL has identified 230 cities, contiguous to existing and proposed gas pipelines, for city gas distribution in a phased manner. In the first phase, it has identified 17 cities to supply piped CNG.
Comment E-mail Print Share
First Published: Tue, Jun 03 2008. 10 48 PM IST