GAIL-VMC JV to start work on transmission lines by Sept

Vadodara Gas Company Ltd (VGCL), a joint venture between gas major, GAIL (India) Ltd and Vadodara Mahanagar Seva Sada (VMSS) – the civic body of Vadodara will start laying down the gas transmission lines for expansion of city gas distribution (CGD) network in Vadodara over the next 4-6 months. In the first phase, the JV-company will set up new transmission lines of around 40-50 kilometers.

“All the formalities relating to formation of the JV have been cleared. The bids have been invited for procurement of pipes for the pipeline. We expect in the first half of this year, we will start laying down the pipelines,” said a senior official of VMSS.

“First, we will lay down the gas transmission lines covering around 40-50 kms. Later the distribution lines will be developed,” the official stated.

It may be noted that in February this year, Saurabh Patel, energy minister, Government of Gujarat had announced to fast-track the formation of JV between GAIL and VMSS or Vadodara Municipal Corporation (VMC). The move was aimed at providing Vadodara more domestic gas pipeline connections.

The boards of directors of both the entities have approved the model of the JV company and formalities including registration have been completed.

GAIL Gas Limited – a wholly owned subsidiary of GAIL and VMSS hold equal stake in the JV.

Currently, there are about 75,000 domestic and about 2800 commercial gas consumers in Vadodara.

The present gas demand of GAIL, GAIL Gas and VMSS of 0.13 million metric standard cubic meters per day (mmscmd) is likely to increase by additional 1.46 mmscmd over the next couple of years.