GAIL to buy 29% in Tripura Gas

Public sector GAIL (India) is in the final stages of acquiring 29 per cent equity in the Tripura Gas Company Ltd (TNGCL), a move which will enable it to become a majority partner in the firm, a statement from the company said here.

On Wednesday, GAIL and the Tripura Industrial Development Corporation (TIDC), a government of Tripura undertaking, signed a gas co-operation agreement.

The main objective of the agreement is to allow GAIL to use its technical and commercial expertise to evaluate gas demand potential in the state, create gas sector infrastructure to ensure transmission of gas to the potential consumers. At present, Tripura, unlike other states, has gas in excess of the quantity utilised.

GAIL has been working in the state of Tripura since 1992 and already has a pipeline infrastructure of 60 kilometer laid out. The company has so far invested around Rs 50 crores in the state.

GAIL chairman and managing director, Proshanto Banerjee, said, "It is our company's mission to optimise the use of natural gas everywhere in the country and ensure its supply to as many consumers as possible. The agreement will now enable us to expand our existing infrastructure and cater to a much larger gas market in the state."

The current production potential of gas in Tripura is around 4 MMSCMD.