GAIL (India) Limited today started natural gas supply to Maruti Suzuki India Limited at its Manesar plant. The supply was inaugurated by Shri B C Tripathi, Chairman and Managing Director, GAIL in the presence of Shri R C Bhargava, Chairman, Maruti Suzuki India Limited. Shri R D Goyal, Director (Projects), Shri Prabhat Singh, Director (Marketing), GAIL and senior officials of the two companies were present on the occasion.
The Gas supply to Maruti Suzuki shall be made through a spur line from the Chainsa – Jhajjar 36” diameter pipeline constructed by GAIL. The Chainsa – Jhajjar pipeline has a capacity of 35 MMSCMD and has been constructed at an investment of Rs. 450 crore. It constitutes the first phase of the Chainsa – Jhajjar – Hisar pipeline project, which is under implementation by GAIL. Maruti Suzuki India Limited is the first customer of GAIL on this pipeline route.
Speaking on the occasion, Shri B C Tripathi, CMD, GAIL said that the commencement of this gas supply to Maruti Suzuki marked the beginning of the gas supplies to this region. This would also help GAIL in pursuing opportunities for setting up of CNG Corridors along the highways in the country to spread the benefit of efficient and environment friendly fuel, CNG, to the transport sector in the country.
Shri R C Bhargava, Chairman, MSIL remembered the almost two decade relationship between GAIL and MSIL in the field of natural gas and said that he hoped to work with GAIL closely for development of the CNG sector in the future also.
In addition to Maruti Suzuki, GAIL shall be supplying nearly 1.0 MMSCMD of R-LNG to 20 more customers located in this region at Gurgaon, Manesar, Dharuhera, Bhiwadi, Khuskhera, Neemrana, etc.
GAIL had signed a Gas Sale Agreement (GSA) with Maruti Suzuki India Limited in March 2009 for supply of 0.33 MMSCMD of R-LNG to their plant at Manesar. This contract is valid for a period of 10 years with a provision for further extension. The R-LNG to Maruti’s Manesar plant shall be supplied from Tranche-A R-LNG quantity from Dahej terminal being imported into India from RasGas, Qatar. The supplies shall be on Take or Pay and Supply or Pay basis. The supplies shall be made at the uniform long-term R-LNG price applicable from time to time.
Further, GAIL has been supplying R-LNG to Maruti Suzuki’s Gurgaon plant around 0.22 MMSCMD since 2004; and from 1st January 2010, the gas supply volume has been increased to 0.36 MMSCMD to Maruti Suzuki’s Gurgaon plant.
About GAIL
GAIL today owns and operates a network of over 7,200 km of Natural Gas high pressure trunk pipeline with a capacity to carry 155 MMSCMD of natural gas across the country. Today, the major focus for GAIL is to maintain its dominant position in the gas business, especially the transmission segment and continue the relationship with existing customers and also add more customers. Therefore, during the 11th plan period, GAIL would build 5000 km of pipelines at an estimated investment of Rs. 28,000 crore. When these pipelines are commissioned, the capacity is expected to increase to around 300 MMSCMD.
GAIL is one of the leading public enterprises with a consistently excellent financial track record. Turnover during the last ten years has shown a compounded annual growth rate of 15 per cent. The Profit After Tax (PAT) during FY 2008-09 was Rs.2,804 crore. The Company's turnover during FY 2008-09 was Rs.23,776 crore.
About Maruti Suzuki
Maruti Suzuki India Limited (MSIL, formerly named Maruti Udyog Limited) is a subsidiary of Suzuki Motor Corporation, Japan. MSIL has been the leader of the Indian car market for over two decades. The company’s two manufacturing facilities are located at Gurgaon and Manesar, south of New Delhi. The two facilities have a combined annual capability to produce over ten lakh (One million) units.
On March 23, 2010, Maruti Suzuki has manufactured one million cars in the financial year 2009-10 making it the only Indian car company to join the select group of global car makers which produce over a million cars annually. On the same day Maruti Suzuki laid the foundation stone for capacity expansion at its Manesar plant by 2.5 lakh units annually to reach 5.5 lakh units by 2012 at an investment of Rs 1700 crore
The company continues to expand its network and today Maruti Suzuki has a sales network of 790 outlets covering 549 towns and cities (March 2009, 681 outlets in 454 towns and cities). The company provides service support to customers at 2,886 workshops across 1,379 towns and cities (March 2009, 2,767 workshops in 1,314 towns and cities).
