The gas regulator Petroleum and Natural Gas Regulatory Board (PNGRB) has awarded a Letter of Authorisation to a consortium led by Gujarat State Petronet Ltd for developing Rs 12,500 crore natural gas pipeline.
This LOA has cleared the path for GSPL to lay 4,000 km long pipelines on three routes, Gujarat State Petronet informed the Bombay Stock Exchange in a regulatory disclosure.
Earlier, GSPL (with 52% stake) in consortium with IOCL (26%), BPCL (11%) and HPCL (11%) had participated in the aforesaid bidding process.
The bids submitted by the said consortium has emerged as the most favourable bid in all the three pipeline projects, it said.
The three gas transmission pipelines are Mallavaram - Bhilwara (1585 kms) pipeline, Mehsana - Bhatinda (1670 km) pipeline and Bhatinda-Jammu-Srinagar (740 km) pipeline, it said.
The consortium needed to complete the said three projects within 36 months from the date of award of the letter of authorisation, it added.
This would enable the consortium to proceed for fund raising for 4,000 km gas transmission projects at an estimated cost of Rs 12,500 crore.
Shares of the company closed at Rs 96.50, up 1.63% from the previous close on the BSE.
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