MIDC set to enter gas distribution via GSPCL alliance

Maharashtra Industrial Development Corporation (MIDC) is entering into a partnership with Gujarat State Petrochemicals Corporation Ltd (GSPCL) for transportation and distribution of one million cubic metres of gas to industrial estates in the state, said Satish Gavai, the MIDC chief executive officer.

GSPCL is laying gas pipelines right up Maharshtra borders. Initially, the gas will be piped to Tarapore, where MIDC has a huge industrial estate and will eventaully be taken to other industrial areas in he state.

"We have appointed PriceWaterhouseCoopers (PWC) for pre-feasibility report of laying a gas pipeline from Talasari, Gujarat to Tarapore, Maharashtra," he said.

Gavai said that the Rs 200 crore investment would be needed for the project will be met through institutional finance and commercial borrowings. "Once the feasibility study is in our hands, we will start looking at various borrowing options," Gavai said. PWC is expected to finish the study by the end of June.

Gavai said that the Tarapore industry oweners association had shown a keen interest in the piped project. The piped gasroject will go some way in meeting the state's current shortage of power. And at the same time reduce the energy bill as it is cheaper than both naphtha and fuel oil by 50 per cent.

"Since MIDC in the business of infrastructure development, it makes sense for us to get into gas transportation and distribution as well," Gavai said.