GAIL in joint venture with KSIIDC for city, industrial gas supply projects
09 Jun 2011
State-owned gas utility GAIL (India) Ltd today signed a joint venture agreement with Karnataka State Industrial & Infrastructure Development Corporation (KSIIDC) to pursue various natural gas-based business activities in Karnataka.
The joint venture will implement projects for supply of piped gas to homes and CNG-driven vehicles in Bengaluru city, besides supply of gas to industrial clusters, according to a stock market filing.
The joint venture company will focus on setting up a natural gas infrastructure in industrial estates and clusters, city gas distribution network, distributed power generation projects in industrial areas and gas distribution infrastructure downstream of trunk lines in Karnataka.
The joint venture is expected to give a thrust to natural gas-based and related business activities in the state, besides fast-tracking city gas distribution projects in the state.
The joint venture company will have an authorised capital of Rs100 crore. GAIL will hold 26 per cent equity in the company while KSIIDC will have 24 per cent stake. Financial institutions, investors and strategic partners will hold the remaining 50 per cent stake, the filing said.
KSIIDC is mandated to pursue infrastructure development projects in Karnataka while GAIL will bring in expertise, know-how, skilled manpower and gas sourcing capabilities.