Ink Rs 500 crore Rajasthan plan

Gas Authority of India (Gail) is planning to invest Rs 500 crore to supply 15 million cubic metres of liquefied petroleum gas (LPG) to industrial, domestic, and automobile users in Rajasthan.

While giving this information, the state's mining and environment minister, Laxmi Narayan Dave, said Gail had proposed to the state government a contract for mining deep reserves of lignite, for an underground gas project. This process will yield "sin" gas, which can be used for setting up power projects.

After considering the proposal, the state government has sent the proposal to the law department for further examination. If the proposal is viable, the government will sign a memorandum of understanding with Gail.

Barmer and Jaisalmer, which have good-quality lignite reserves, will get projects from Gail, if the proposal materialises.

It may be mentioned that Gail India has already invested Rs 1,000 crore in setting up gas pipelines, gas-filling stations, and laying optic fibre cables. Gail has also started setting up power plants in the state.

In a new venture in Dholpur, it will establish a 350 Mw power plant, to be run on LPG.

Dave said the government would not lose time to act upon the proposals and contracts of Gail India.