RIL to acquire 67% stake in KG Gas Network Ltd

RIL to acquire 67% stake in KG Gas Network Ltd

Hyderabad: Reliance Industries will acquire a majority 67% stake in the Krishna-Godavari Gas Network Limited, set up by Andhra Pradesh government, that has the mandate for a state-wide gas distribution project estimated to cost Rs1 lakh crore.

The Investment Corporation of Andhra Pradesh (InCAP), Gujarat State Petroleum Corporation and IDFC Private Equity Fund will hold the balance stake with 11% each.

Mukesh Ambani-run RIL will sign the shareholder’s agreement with the state government next week, state economic adviser D V Somayajulu told reporters at the end of a high- level review meeting chief minister Y S Rajasekhara Reddy held on the KG Basin gas supplies.

Somayajulu said KGGNL would prepare a roadmap in the next 15 days for the City Gas Distribution network.

KGGNL would lay the pipelines for the CGD Network in Andhra Pradesh and possibly commence supplies in the next four years.

“For Hyderabad alone, the cost of building the CGD network will be over Rs3,500 crore, while a staggering Rs1 lakh crore is required for a similar network across the state," Somayajulu pointed out.

Already, Bhagyanagar Gas Limited - a joint venture of ONGC and GAIL - has been laying the pipeline for city gas distribution in Hyderabad, Vijayawada and Kakinada cities.