Gail to get majority pie in Tripura gas project

Gail (India) Ltd will get a majority stake of 29 per cent in Tripura Natural Gas Company Ltd (TNGCL). An agreement to this effect, between Gail, Tripura Industrial Development Corporation (TIDC) and Assam Gas Company Ltd (AGCL) will be signed soon.

As per the agreement, 29 per cent shares of TNGCL at par with the initial authorised share capital of Rs 10 crore will be offered to Gail.

The equity participation pattern will allow TIDC and AGCL each to hold 10 per cent equity while public, financial institutions and others will hold the remaining 51 per cent.

The government of Tripura in May 2004 had decided that TNGCL would be the exclusive company to undertake retail gas distribution in Tripura.

TNGCL shall promote and expand its existing business of distribution and marketing of natural gas for consumers in domestic, commercial & industrial sectors including distribution and marketing of CNG for use by consumers in the automotive sector.

The Tripura government will provide all the necessary support, policy framework and fiscal incentives if required to enable increased gas usage in the state.

TNGCL will undertake distribution and marketing in and around the cities in the state, of piped natural gas (PNG) to domestic/ commercial/ small industrial users; compressed natural gas (CNG) as fuel for vehicles or for any other purpose and any other gaseous fuels permitted by the government of India.

The company will also invest in setting up required infrastructure and its operation & maintenance, including facilities for compression of natural gas.

TNGCL will also set up CNG dispensing stations, create administration and marketing assets, lay communication cables along with pipeline network and provide technical services to customers.

Though, Gail would exclusively supply natural gas to the TNGCL at City Gate stations, TNGCL would be responsible for laying, operating and maintaining its own pipeline by taking tap-off from custody transfer point from the existing and/ or future natural gas pipelines of Gail for such city distribution projects.

The Centre had allocated 0.25 mmscmd of natural gas to Tripura's department of industries for use in industrial and other purposes in 1991.

Out of which 0.13 mmscmd was later transferred in favour of Tripura Natural Gas Company Ltd (TNGCL), a joint venture company formed by TIDC & AGCL in 1997, for implementation of gas distribution project at Agartala.

The balance 0.12 mmscmd still stands allocated in the name of Tripura government, department of industries. In 2003, Gail was requested by Tripura to take up the City Gas Project in Agartala. Subsequently, TIDC and AGCL agreed to induct Gail by offering a majority stake in TNGCL.