J&K to sign MoU with Gail

"Gail has submitted the revised and the final draft MoU, in connection with the project, to the state. The State Law department studied the proposal and suggested minor modifications in it," a source in the Consumer Affairs and Public Distribution (CAPD) department told Business Standard.

In March 2004, an agreement was signed between Gail and the Small Industrial

 

Development Corporation (SIDCO) of Jammu & Kashmir to conduct a survey and lay gas pipelines in the state and further connecting it with the company's existing pipeline in Punjab. The agreement was then signed by J Wasan and the then SIDCO MD V K Bakshi. However, the process went slow due to some operational problems and lack of interest shown by the concerned state agency.

This new project will help in promoting usage of natural gas its fractions and polymer products. Subsequently, the state plans to introduce compressed natural gas (CNG) for automobile use. Two capital cities of Jammu and Srinagar besides Kathua, Udhampur and Anantnag will be the immediate beneficiaries of this project.

The sources said that the company experts have already conducted a techno-economic feasibility study based on the gas demand, potential and geographical conditions, distribution of gas and allied facilities in the state. SIDCO would act only as a nodal agency for facilitating and coordinating the activities of Gail India Ltd during the course of implementation of the project.