"We plan to invest Rs 2,565 crore in pipeline projects, Rs 500 crore in E&P projects, Rs 187 crore in petrochemicals, Rs 115 crore in business development and the rest in City Gas and telecom business," Gail India Chairman and Managing Director UD Choubey told reporters.
Meanwhile, the company also announced a 9 per cent jump in its net profit at Rs 2,601 crore and a turnover of Rs 18,008 for the year 2007-08.
The profit before tax during the year 2007-08 increased 35 per cent to Rs 3,855 crore from Rs 2,860 crore in 2006-07.
Gail India has also identified three sites for setting up a multi-billion-dollar petrochemical plant.
"Gail has selected three countries to set up the mega petrochemical plant, the names of which would be revealed in 2-3 months time, Choubey said.
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The Chainsa-Jhajjar pipeline at an estimated investment of Rs 536 crore would be completed by September 2009.
The projects to be taken in phase-II for completion by 2011 and for which pre-project activities have been already initiated are Dabhol-Bangalore Pipeline at an investment of Rs 3,568 crore, he said.
Gail is also setting up Petrochemical Complex in Assam through joint venture route along with Numaligarh Refineries Ltd, Oil India Ltd and the Assam government at a project cost of Rs 5,460 crore.
The complex would have a capacity of 2,20,000 tons per annum (TPA) of ethylene and 60,000 TPA of propylene.
In the year 2007-08, Gail India signed a memorandum of understanding (MoU) with Reliance Industries Ltd (RIL) for joint cooperation in petrochemicals. Under the MoU, Gail and RIL are exploring opportunities for setting up petrochemical complexes outside India.
Gail also signed MoU with HPCL, Mittal Group, OIL and Total for exploring opportunities for setting up a petrochemical plant in southern India.
It has set up a subsidiary company for city gas distribution (CGD) and CNG corridor business. The company would take up distribution and marketing of CNG fuel for vehicles, piped natural gas for domestic, commercial and industrial purposes and auto LPG as fuel for transport vehicles in various cities in the country and abroad.
Meanwhile, credit rating agency Moody's has assigned A3 rating to the company indicating a stable outlook.
The credit rating agency said that Gail is strongly placed to take advantage of the demand and increased gas supply environment.