Himachal moots JV with GAIL

Looking to benefit from Gas Authority of India Ltd (GAIL) pipelines passing through Punjab and Haryana, the Himachal Pradesh government has approved the proposal for a joint venture with GAIL to meet its industrial and other needs of LPG in the upcoming industrial belt here.

The industrial towns of Baddi, Barotiwala, Una, Damtal, Kala Amb and Poanta Sahib will benefit most from the deal, say officials.

The proposal was recently submitted to the state government by the state-run Himachal Pradesh State Industrial Development Corporation(HPSIDC) and was cleared on Tuesday here by the Cabinet.

"If the proposed memorandum of understanding (MoU) is signed between HPSIDC and GAIL, two pipelines would be diverted from Panipat in Haryana and Pathankot in Punjab," said Himachal Pradesh Industries Minister Kuldeep Kumar.

"The state is already hydel power-surplus and with the coming up of a GAIL pipeline, it will have more hydel power to spare and sell to northern India," said the minister.

"In the first stage, the HPSIDC and GAIL will carry out a survey of the industrial and non-industrial areas to assess the gas needs of the state," said Anil Khachi, managing director of HPSIDC.

GAIL is one of India's leading public sector enterprises and the largest gas transmission and marketing company.

It owns and operates over 4,600 km of pipeline and claims to have a 95 per cent share in the natural gas industry. It also operates the country's largest gas-based LPG extraction plant.