Gujarat Gas lines up Rs 150 crore

Ahmedabad-based Gujarat Gas Company Limited (GGCL), primarily engaged in procurement and distribution of natural gas, is now focusing on household gas connections. The company has earmarked Rs 130-150 crore for the same during 2008.

"We are looking at a capital expenditure of Rs 100-120 crore in addition to another Rs 30 crore for network upgradation in 2008. GGCL will start providing household gas through pipeline in Kim, Karanj, Vyara, Bardoli, Jhagadia, Vilayat, Sachin, Bardoli, Olpaad, Pal, Veddabholi, Mota Varachha and Suroli this year," a senior company official said.

As of now, the company's pipeline network covers over 2,100 km. GGCL has its base in the golden corridor of south Gujarat. It is establishing a pipeline network in the Vapi GIDC area.

For FY08-09, the company is targeting a turnover of over Rs 15,00 crore, the official said. However, he declined to comment on the profit target for the next fiscal.

"The profitability of gas companies hinges on the price of procurement, which could be changed with effect from April 1, 2008, when some of the contract will be renewed. Hence, it is too early to comment on the financial aspects for future," he said.