Kerala State Industrial Development Corporation Limited (KSIDC) and GAIL (India) Limited on Monday signed a memorandum of understanding for natural gas infrastructure and city gas distribution in Thiruvananthpuram.
The MoU was signed by J Wason, executive director (marketing), GAIL, and Alkesh Sharma, managing director, KSIDC.
GAIL CMD BC Tripathi said the MoU aimed to develop natural gas infrastructure and city gas distribution. This apart, it would develop the use of eco-friendly fuels and promote a joint venture for domestic, industrial and transport sectors in Kerala.
The two organisations would initiate a joint exercise for immediate assessment of the demand potential of natural gas and allied products in the state. Besides, the cooperation is based on the strategy of awareness, prevention and implementation to work towards the goal of green environment.
GAIL would use its technical and commercial expertise to evaluate the energy demand in the state. GAIL and KSIDC would conduct techno-economic studies based on demand potential, including pipelines and city gas distribution networks, and prepare the preliminary techno economic feasibility report for infrastructure development. The MoU also envisages to identify industrial clusters for distribution of natural gas as fuel and to determine modus operandi for setting up of joint ventures by GAIL in Kerala.
The GAIL board has also approved laying of the 1,114-km Kochi–Kanjikkod– Mangalore-Bengaluru pipeline at an estimated investment of Rs 3,032 crore. The project would implemented in two phases.
In Phase I, the company would lay a 94-km pipeline from Kochi to Alwaye covering Udyogmandal, Binannipuram and Ambalamedu at an investment of Rs 267.50 crore. Phase I is scheduled to be completed by 2011-12.
In Phase II, it would lay a 1,018- km pipeline from Alwaye to Kanjikkod, Kanjikkod to Mangalore and Kanjikkod to Palakkad covering Thrissur, Kottakal, Kozhikode, Kannur, Mangalore and Palakkad. The project would involve laying of pipelines from Palakkad to Bengaluru covering Coimbatore and Salem. Phase II, at Rs 2,764.50 crore, is scheduled to be completed by 2012-13.
