Govt move on depreciation props up GAIL

DALAL STREET SPIKES

GAIL India was up 1.19 per cent to Rs 241.35 after the Department of Company Affairs (DCA) approved a change in the depreciation charge on gas and oil pipelines to 3.17 per cent from the present 10.34 per cent per annum.

The company has planned for an annual capital expenditure of Rs 2500 crore to Rs 3000 crore over the next three years and are looking for business opportunities in Bangladesh. Gail India is India's largest natural gas transmission company.

For the quarter ended 30 June 2005, Gail India recorded a profit after tax of Rs 483.48 crore compared to the Rs 338.93 crore achieved in the previous corresponding quarter.