GAIL may float arm to set up CNG outlets

GAIL India, the country's largest transporter and marketer of natural gas, is looking at the possibility of floating a subsidiary to set up compressed natural gas (CNG) outlets along the highways where it has its pipelines.

The company is targeting to become a Rs 50,000 crore company by 2011. The company plans to set up these outlets under its CNG corridor plan and has already identified in the areas Delhi-Agra-Lucknow highway and on the Mumbai-Pune highway.

The subsidiary, however, could go in for a partnership to set up these outlets. "We already have city gas distribution such as Mahanagar Gas and Indraprastha Gas. This venture could be on the same lines of partnership," said U D Choubey, chairman and managing director, GAIL.

Gail already has 6,700 km pipeline networks, which it is planning to almost double over the next four years.