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GAIL-HPCL joint venture to supply gas in AP
By A Business Correspondent
GAIL and HPCL will jointly distribute cooking gas, piped gas and auto LPG in Andhra Pradesh through a pipeline network. The two companies have signed a MoU to float a joint venture company named Bhagyanagar Gas Ltd (Bhagyanagar being the old name of Hyderabad) for the project. Both GAIL and HPCL will hold 22.5 per cent stake each in the joint venture. The Andhra Pradesh government has agreed to subscribe 5 per cent of the equity, while the balance 50 per cent will be offered to financial institutions, both domestic and foreign, and the public. The joint venture will have an equity base of Rs 100 crore. The project envisages an investment of Rs 700 crore to Rs 1,000 crore in the next seven to eight years.
The new company would distribute natural gas for the residential, commercial and automobile sectors. It would build and operate its own pipeline network. While GAIL will provide the technical expertise in the construction and operation of the CNG and the piped gas distribution system, HPCL will assist in the marketing of the LPG in the state.
For more details please refer to Projectmonitor Prinit Version.
(5/3/02)
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