Registered as a limited company last week, GGL, is likely to set the task of developing its business plan and present to the Board within three months. It would be working as holding office to implement city gas distribution projects through branch/unit offices.
It will take up distribution and marketing of CNG as fuel for vehicles (inter city as well as intra city), piped natural gas for domestic/commercial/industrial purposes and auto LPG as fuel for transport vehicles in the various cities for India and abroad. The subsidiary company will also take up investment in and setting up of infrastructure, in the various cities of India and along the national highways for building CNG corridors which includes, among others, natural compressor stations, laying of the pipelines from City Gate Station(s) to the consumption areas and associated facilities, setting up of distribution points / retail outlets for CNG / Auto LPG and transport gas through mobile cascades / lorries.
The new subsidiary will also take up the CNG Corridor Project when involves an estimated capital outlay of Rs 35 crore for setting up CNG stations along the highways. GAIL has identified 230 cities contiguous to existing and proposed pipelines for City Gas Distribution in phased manner.
In first phase, seventeen cities have been identified to be taken up through its subsidiary company with authorisation from Petroleum and Natural Gas Regulatory Board (PNGRB). The subsidiary company would take up directly with PNGRB towards the authorisation and execution of CGD projects throughout India.