GAIL, VMC complete formalties for natural gas supply JV

Vadodara Municipal Corporation says the joint venture company would come into being in the next couple of months

All the required formalities have been completed for the launch a joint venture company between the Vadodara Municipal Corporation (VMC) and the Gas Authority of India Ltd (GAIL) for supply of natural gas in the city and surrounding areas.

Talking to PTI here today, VMC commissioner Ashwini Kumar gave this information and also expressed hope that the joint venture company would come into being in the next couple of months.

"The proposal of this joint venture company would come before the general body of the VMC on August 8. After getting approval from the elected members of the VMC, the Gujarat government as well as the the concerned central authorities, the joint venture company is expected to come into existence in the next couple of months," he said.

"This proposed company aims at providing gas to the city and surrounding areas for the domestic, non-domestic and industrial purposes at present. It is mostly provided for domestic purposes," Kumar added.

Once the new company comes into existence, it is expected to provide over 85,000 gas piped connections in the city, in addition to the existing 78,000 connections.

GAIL presently has allocated one lakh cubic metres of gas for the city, which will be increased to provide more gas connections for domestic, non-domestic and industrial sector.

"It was a daunting task for us to complete all the formalities, keeping in mind the interest of VMC and people of the city," Ashwini Kumar said.

VMC and GAIL had signed a formal agreement to this effect in New Delhi in April 2011, followed by signing of MoU between GAIL and VMC in Vadodara in October 2009.

According to Kumar, the new proposed JV company will have six directors, with three representatives each from VMC and GAIL.