Seeking to actively step up the tempo for expansion of city gas distribution, GAIL (India) will give its subsidiary GAIL Gas Ltd. Rs. 500 crore for funding its four ongoing city gas projects.
GAIL Gas came into existence with a seed capital of Rs. 200 crore from GAIL. It would get around Rs. 500 crore over the next five years for the four ongoing city gas projects in Meerut, Dewas, Sonipat and Kota, company CEO M. Ravindran told journalists on the sidelines of the 8th Petro India Conference organised by the Observer Research Foundation here.
Mr. Ravindran said: “Our debt requirement for these four projects would be close to Rs. 180 crore.
Since our parent company has cash surplus, we are not exploring the option of infusion of fresh equity for raising the money from the market.”
“The four city gas projects are already on. We hope to start some supplies in the four cities during January to March next year,” he added. Out of 220 cities, where city gas projects would come up by 2020, the company was eyeing around 60 per cent of those (132 cities). The company was aiming at bagging 75 city gas projects by 2011 through competitive bidding process, Mr. Ravindran said.