GAIL lines up Rs 3,000 cr investment

GAIL (India) will invest Rs 2,500-3,000 crore in the next financial year in laying pipelines and expanding the capacity of its petrochemical plant. The capital expenditure in the current year is expected to be Rs 1,400 to Rs 1,700 crore.

The major pipelines to be constructed next fiscal included the Dahej-Uran pipeline and the Dabhol-Panvel pipeline, GAIL Chairman and Managing Director Prashanto Banerjee said here today.

The Dabhol-Panvel pipeline was recently cleared by GAIL's board, and was expected to be completed by December 2006, Banerjee said. He added that the 180-km pipeline would be built at Rs 1,200 crore.

He said the company would invest Rs 700 crore in expanding the capacity of its Pata petrochemical plant in UP from 3,10,000 tonnes per annum to 4,50,000 tpa by December, 2006.

About exploration blocks in Myanmar, Banerjee said Myanmar had assured GAIL that the company could take 65 per cent of gas from the A-1 block, provided market prices were paid. He added that the company was exploring the prospect of transporting the compressed natural gas from Myanmar on sea route.

Regarding gas supplies for restarting Dabhol Power Project, Banerjee said the LNG terminal would be completed by September-end and GAIL was in talks with Qatar, Oman, Abu Dhabi, Malaysia and Australia for sourcing the fuel.

"The LNG terminal was 70 per cent complete when we took over the Dabhol power company. We are currently carrying out assessment studies which we hope to complete by mid-March and will award contract for the completion job by the end of the month," Banerjee said.