RIL to acquire 67 per cent stake in Krishna Godavari Gas
05 Aug 2009
Reliance Industries is planning to acquire a 67 per cent stake in Andhra Pradesh government-owned Krishna Godavari Gas Network Ltd (KGGNL), media reports said on Wednesday.
The Investment Corporation of Andhra Pradesh (InCAP), Gujarat State Petroleum Corporation and IDFC Private Equity Fund each will hold 11 per cent of the balance stake.
KGGNL was floated for putting up a network of pipelines across the state for the supply of domestic gas. The entire piped gas distribution network across the state is expected to cost Rs100,000 crore, the report said.
State economic adviser D V Somayajulu told reporters that RIL has sought time to meet the Andhra Pradesh chief minister Rajasekhara Reddy between 11-14 August to sign the shareholders' agreement.
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 Rs1000,000 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.
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