Financial Daily from THE HINDU group of publications
Tuesday, Dec 28, 2004
Financial Daily from THE HINDU group of publications Tuesday, Dec 28, 2004 |
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Corporate
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Mergers & Acquisitions Industry & Economy - Petroleum GAIL to get 29% stake in Tripura National Gas Our Bureau
New Delhi , Dec. 27 GAIL India Ltd said on Monday that it will get a stake of 29 per cent in Tripura National Gas Company Ltd (TNGCL), which will undertake retail gas distribution in Tripura. Tripura Industrial Development Corp (TIDC) and Assam Gas Co Ltd (AGCL) will hold 10 per cent equity each while public, financial institutions and others would hold the remaining 51 per cent, a company release said here. "An agreement to this effect between GAIL, TIDC and AGCL will be signed soon. "As per the agreement, 29 per cent shares of TNGCL at par of the initial authorised share capital of Rs 10 crore will be offered to GAIL," it said. TNGCL would promote and expand its existing business of distribution and marketing of natural gas for consumers in domestic, commercial and industrial sectors including distribution and marketing of CNG for use by consumers in the automotive sector. The Tripura Government will provide all the necessary support, policy framework and fiscal incentives. "TNGCL will undertake distribution and marketing, in and around Tripura of piped natural gas (PNG) to domestic/commercial/small industrial users; compressed natural gas (CNG) as fuel for vehicles or for any other purpose," the release said. The company would also invest in setting up the required infrastructure and its operation and maintenance, including facilities for compression of natural gas. TNGCL would also set up CNG dispensing stations. Though GAIL would exclusively supply natural gas to TNGCL at city gas stations, TNGCL would be responsible for laying, operating and maintaining its own pipeline. The Government had allocated 0.25 million standard cubic meters per day of natural gas to Tripura for use in industrial and other purposes in 1991. Of this, 0.13 mmscmd was later transferred in favour of TNGCL for implementation of gas distribution project at Agartala. The balance 0.12 mmscmd still stands allocated in the name of Government of Tripura, Department of Industries. "In 2003, GAIL was requested by the Tripura government to take up the city gas project in Agartala. Subsequently, TIDC and AGCL agreed to induct GAIL by offering a majority stake in the existing joint venture company, TNGCL, for distribution and marketing of natural gas and CNG for use in residential, commercial, industrial and automotive sector," the release said.
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