Karnataka cabinet today approved the formation of a Joint Venture company to set up City Gas Distribution (CGD) network for Bengaluru households and fuel for CNG-run vehicles.
"The cabinet today approved a Joint Venture company formed by GAIL India and Karnataka State Industrial Infrastructure Development Corporation (KSIIDC) for CGD for Bengaluru households and fuel for CNG-run vehicles," Law and Parliamentary Minister T B Jayachandra told reporters at a cabinet briefing here.
The new JV - Karnataka Natural Gas Limited - would also develop CGD networks in major cities and towns along which the Dabhol-Bengaluru gas pipeline alignment passes, he said.
Talking about the investments, Jayachandra said KGNL would implement the project with a share capital of Rs 100 crore.
"KSIIDC will have 25 per cent stake and GAIL have 75 per cent," he said.
With the approval, KGNL will begin the business plan to take the project ahead, the Minister said, adding that the trunk gas pipeline laying work between Dabhol in Maharashtra to Bidadi near Bengaluru has been completed.
The Dabhol-Bengaluru gas pipeline project spur lines to Gokak, Ratnagiri, Kolhapur, Sangli, Bijapur, Dharwad, Davangere, Harihar and Tumkur.
