Gail India Limited would invest around Rs. 250 crore in two new blocks in North-East in the coming years.
The two blocks are located in Tripura and Assam. Whereas drilling activity has already started in the Tripura block, in the Assam block, it would start soon, informed UD Choubey, chairman and managing director of Gail to Business Standard.
Choubey was in the city to take part at the North-East Business Summit, jointly organised by the ministry of Development of North Eastern Region (DoNER) and Indian Chamber of Commerce (ICC).
Gail will have 80 per cent stake in the Tripura block, which was awarded to Gail under NELP IV. Jubilant Energy will own the rest 20 per cent stake.
In the Assam block, which is located in Golaghat and was awarded under NELP V, Gail has 35 per cent stake. Jubilant Energy and Gujarat State Petroleum Corporation have 35 per cent and 20 per cent stake respectively.
Gail, which presently has 29 blocks in the country, has made nearly Rs.600 to 700 crore investment in North-East till date. Choubey said that Gail is willing to invest more in the region if there are more sources of gas available.
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"We have already made around Rs. 600 to 700 crore investment in North-East. Given that there are sources of gas available; we will invest more. Investment is not a problem," said Choubey.
Choubey also allayed apprehensions that there was any delay in the implementation of Rs. 5,460 crore gas cracker project at Lepetkata in Dibrugarh district in upper Assam. He said that the project would be completed well in time – that is by 2012.