Gail, Himachal ink pipeline extension deal

Gail (India) Ltd and the Himachal Pradesh industries department today signed an agreement for extension of natural gas pipeline to the industrial towns of Baddi, Barotiwala and Nalagarh.

“The proposed Dadri-Bawana-Nangal natural gas pipeline will be extended to Baddi-Barotiwala, Nalagarh by 2010-11 and will involve an investment of Rs 300 crore,” Gail Chairman and Managing Director U D Choubey told reporters here.

“The gas pipeline will bring clean and environment-friendly fuel to various consumers in the hill state and will include industrial, domestic and transport sectors,” Choubey said.

The availability of gas in the region will herald the use of more efficient energy resource, increasing the competitive edge of the industries using natural gas. Himachal Pradesh is aiming to become the first carbon-free state in the country.

“Under the agreement, Gail will use its technical and commercial expertise to study the various options and collate the gas demand potential of the state. A sample survey of the industrial areas covered has already been completed,” Choubey said.

The deal also provides for Gail and the state industries department to identify more industrial clusters for distribution of natural gas as fuel and to determine modus operandi for setting up of joint venture between the two.

As the nodal agency the state industries department will facilitate information pertaining to fertiliser, power, industrial, domestic and transport sectors which have a potential to consume gas and CNG as fuel or feedstock.

It will also grant permissions and clearance for development of gas infrastructure. The agreement was signed by B C Tripathi, director (marketing), Gail, and Manoj Kumar, director (industries) of the state government.