A shareholders' agreement for restructuring of Andhra Pradesh Gas Distribution Corporation Limited (APGDC) has been signed by Andhra Pradesh Gas Infrastructure Corporation Private Limited, Andhra Pradesh Gas Distribution Corporation Limited and GAIL Gas Limited to pave way for creation of gas supply network.

GAIL Gas Ltd., has been taken in as equal partner in the APGDC.

Initially, the Andhra Pradesh Gas Distribution Corporation Limited has been incorporated as a wholly-owned subsidiary of Andhra Pradesh Gas Infrastructure Corporation Private Limited for laying and maintaining natural gas pipeline infrastructure and city/district Gas Distribution Networks in Andhra Pradesh.

According to a statement, the State Government after careful study of the present day natural gas scenario and also to tap the potential of the natural gas and to accelerate the industrial growth in the State have given the nod for the equity participation by GAIL Gas Limited.

GAIL Gas Limited is the wholly-owned subsidiary of GAIL India Limited and focusing mainly on the city gas distribution networks. The agreement was signed in the presence of Mr Sutirtha Bhattacharya, Principal Secretary to Government, Infrastructure & Investment Department; Mr B. R. Meena, Vice-Chairman & Managing Director, APIIC; and MD, APGIC, Mr. Vijayanand, MD, AP Genco, Mr. Prabhat Singh, Director (Marketing), GAIL India Limited.

The issue of geographical advantage of Andhra Pradesh to the KG Basin Blocks and Kakinada were highlighted.

The need for setting up of RLNG terminal in the east-coast was stressed by the partners to support power plants, fertilizer units, ceramic, glass and other industries in the State.

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