Gail (India) is aiming revenues of Rs 45,000 crore by 2011 riding on higher growth in the gas transmission business. The company plans to lay pipelines of around 5,000 km, within the 11th plan period, at a cost of Rs 18,000 crore."With the laying of the pipelines, the transmission capacity is expected to increase from 140 million cubic meter of natural gas at present, to around 280 million cubic meter," U D Choubey, chairman and managing director, Gail, said.Gail currently owns and operates a network of over 6,100 km of natural gas high pressure trunk pipelines.The government has given in-principle clearances for five new pipelines, which would increase Gail's network from 6,100km to 11,500km, Choubey said.The project will be implemented in two phases.The investments will be funded largely from borrowings, while internal accruals will also be used to part-fund the project.In the second phase, Gail would lay the 890 km long Jagdishpur-Haldia pipeline. The pipeline will serve the industrial belts of Gorakhpur, Barauni, Durgapur and Haldia.In 2006-07, the company's turnover stood at Rs 16,047 crore on a net profit of Rs 2,387 crore.With natural gas emerging as the fuel of choice in the country, Gail is concentrating on growth in the city gas segment.Apart from joint ventures for city gas projects for Delhi, Mumbai, Andhra Pradesh, Lucknow, Agra, Kanpur, Tripura, Maharashtra, Madhya Pradesh and Rajasthan, Gail and Indian Oil Corporation form a joint venture for city gas distribution projects in Bengal.Gail and Indian Oil will each hold 22.5% in the venture, while the state government will hold 5% and 50% will be with strategic investors.Initially, gas from coal bed methane (CBM) may be distributed in the Kolkata-Asansol region, which will later be replaced by natural gas. The gas will be cheaper than LPG, Choubey said.The company will also enter the petrochemicals, exploration & production (E&P) and CBM extraction sectors.
