GAIL plans Rs 2,744 crore capex for 2007-08
By Our Corporate Bureau | 10 May 2007
Of the Rs 2,744 crores, the company plans to invest Rs 1,855 crores in pipeline projects, Rs 500 crores in E&P projects, Rs 146 crores in petrochemicals, Rs 94 crores in business development, and the rest in projects related to city gas, telecom, and coal gasification. GAIL is expanding the capacity of its Pata petrochemicals plant in Uttar Pradesh to 410,000 tonnes per annum (TPA) from the current 310,000 TPA. The project is expected to be completed by the first quarter of the current financial year sources said.
GAIL plans to raise Rs 2,500 crores in the current financial year, of which 60 per cent would in the form of external commercial borrowings. The borrowings will be utilised to partly fund the capex in the current financial year and in 2008-09. GAIL plans a total capital expenditure of Rs 25,000 crores for the next five years (by 2011-12). Of this amount, it would raise Rs 15,000 crores through borrowings, and the remaining Rs 10,000 crores would be through internal accruals.
Despite being hit by natural calamity and subsidy element, GAIL has recorded a sustained performance in all key physical and financial parameters in the financial year 2006-07.
According to the audited figures, turnover for the year went up by 11 per cent to Rs 16,047 crores from Rs 14,459 crores in 2005-06. The profit after tax for the year under review was Rs 2,387 crores against Rs 2,310 crores in the previous year.
