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| KSIDC, GAIL JV to promote city gas |
| BS Reporter / Chennai/ Kochi Dec 09, 2011, 00:48 IST |
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The Kerala State Industrial Development Corporation (KSIDC) and GAIL Gas Limited (GGL) have set up a joint venture —Kerala GAIL Gas Limited — to implement supplementary gas infrastructure in the state.
The JV has Alkesh Sharma, secretary - industries and managing director - KSIDC, J Wason, managing director and CEO, GGL, TP Thomas Kutty, executive director, KSIDC and AK Singh, general manager, GAIL on the board of directors.
The board in its meeting recently approved the business plan prepared for the project. This includes promoting city gas distribution projects, laying of spur line to provide last mile connectivity to bulk /large consumers of natural gas, setting up of CNG stations for the Kerala State Road Transport Corporation (KSRTC) depots and for boat services, marketing of gas related equipment, and setting up of captive gas-based power plants.
KGGL will also set up a gas training institute at Angamaly, near Kochi. For this, the KSICD will provide the land. The institute will be a skill development centre for technicians in the natural gas business and will offer short-term courses. The company also intends to promote a gas-based power plant for the steel-based industrial cluster at Palakkad, jointly with the Steel Manufacturers Association.
The new company will establish CNG stations for KSRTC buses across the state. The first such station will be set up in Kochi as natural gas is expected to be available here within one year when the LNG terminal of Petronet LNG is commissioned. The conversion into CNG will make a substantial improvement in the financial performance of KSRTC and will also create the fleet operation environment-friendly. KSRTC has a fleet of 6,000 buses and will draw up a plan for conversion into CNG buses. For the CNG stations, the required space is proposed to be provided by KSRTC, wherein KGGL will install CNG dispensers.
According to a feasibility report, the total project cost is estimated at Rs 2,000 crore. GAIL Gas will have a 26 per cent equity and KSIDC 24 per cent in the JV. The remaining shares will be offered to financial institutions/strategic investors, at a later stage. The corporate office of the company will function from the Kochi office of GAIL, initially, a KSIDC release said here.
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