The board of directors of Andhra Pradesh Industrial Infrastructure Corporation (APIIC) on Tuesday approved the proposal to create a joint venture company with APGenco. APIIC would have a majority 51 per cent equity share and APGenco the remaining 49 per cent.
The new company —AP Gas Infrastructure Corporation (APGIC) — would be involved in exploration and production activities in the oil and natural gas sector. It would also be involved in upstream, midstream and downstream activities. The company, which would be a facilitator on behalf of the state government, would work to optimise the utilisation of oil and natural gas available in the K-G Basin within the state and to create employment opportunities to youth.
Earlier on August 11, the Director General, Hydrocarbons made a presentation on the options and opportunities available in the oil and natural gas sector and recommended to the state government to form a special purpose vehicle for this purpose. Chief minister YS Rajasekhara Reddy had already conveyed his approval for the creating a new company.
The APIIC board also approved the proposal for a five per cent stake in Bhagyanagar Gas Limited, a joint venture of HPCL and GAIL, which currently distributes gas Hyderabad, Vijayawada and Kakinada. The equity participation by APIIC will facilitate allotment of land to Bhagyanagar Gas Limited at strategic locations to expedite the gas pipeline network to serve domestic and industrial areas.
APIIC chairman and managing director BP Acharya chaired the meeting. Industries and commerce principal secretary B Sam Bob, roads and buildings principal secretary T Chaterjee, industries commissioner PV Ramesh and finance secretary P Satyanarayana Rao, who are directors of APIIC, were present in the meeting.