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MUMBAI, March 26

GAIL (India) Ltd has planned investments of Rs 18,000-20,000 crore towards completion of its planned national gas grid of over 12,000 km over the next five years. The company will raise the money "on its balance sheet," according to Mr Prashanto Banerjee, Chairman and Managing Director, GAIL.

The company has completed 6,500 km through its own resources and ADB loans. Work has begun on the Dahej-Bijapur link while the GAIL board has approved the Dahej-Uran-Dabhol, Kakinada-Kolkata and Kolkata-Chennai links. This would involve an investment of Rs 2,860 crore, he said.

The board has also approved an investment of Rs 647 crore in expanding the capacity of its Pata petrochemical unit from 3 lakh tonnes to 5.5 lakh tonnes. The expansion will be completed in the next one-and-a-half years.

The Dahej-Bijapur link will be completed in time for the commissioning of Petronet LNG Ltd's Dahej LNG terminal, he said.

Mr Banerjee said GAIL, one of the promoters of PLL along with IOC, ONGC and BPCL, was "taking a hard look at costs involved in the project" to cut the price of LNG to be supplied to consumers.

"GAIL, which will be responsible for transporting LNG imported at Dahej from Qatar, proposes to take a cut in transportation costs in order to help cut the consumer price," Mr Banerjee said.

GAIL may sell the imported LNG at different rates in Gujarat and the rest of the country as sales tax rates were as high as 22 per cent in the State, he said.

Tie-up likely for Dabhol bid

GAIL India may join hands with Tata Power and international oil major, BP Plc, in the bidding process for the beleaguered Dabhol Power project.

"We are in serious talks with the companies," Mr Prashanto Banerjee, CMD, Gail, said here.

The Tatas had expressed interest in a joint bid with Gail when lenders to the 2184 MW power plant and 5 mmtpa LNG project had called for expressions of interest in reviving the project last year.

Mr Sashi Mukundan, Country Head, BP, did not deny the move. "Tata and we are in discussion and are looking at a possibility for inducting a third partner. But it is too early to comment," he said.

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