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M Ramesh

Chennai , Aug. 4

IDFC Pvt Equity Co Ltd will pick up a 50 per cent stake in Krishna Godavari Gas Network Ltd investing an amount which "could be as much as" $60 million (Rs 275 crore), IDFC Pvt Equity's President & CEO, Mr Luis Miranda, told Business Line on Friday. The funds would be invested out of the $440 million corpus of IDFC Pvt Equity-II.

Krishna Godavari Gas Network Ltd is a joint venture of the Government of Andhra Pradesh, which owns most of the gas, and Gujarat State Petroleum Corporation, which holds Gujarat State Petronet Ltd, a company that has put up a gas pipeline network in Gujarat. Andhra Pradesh's stake is held by the state-owned Infrastructure Corporation of Andhra Pradesh (INCAP). IDFC Pvt Equity (IDFC PE) joins the company as the third partner.

Krishna Godavari Gas Network will put up a network of pipelines across Andhra Pradesh. According to the Chief Minister , Dr Y.S. Rajasekhara Reddy, the company will reach K-G gas to "every district in Andhra Pradesh", by 2008.

Mr Miranda said one branch of the network would be extended so as to connect to Gujarat's own gas pipeline network.

It is learnt that the idea for setting up the company emanated from IDFC PE, which also holds a stake in Gujarat State Petronet Ltd.

Mr Miranda said that between the two funds of IDFC PE, as much as $630 million has been collected. About half of the amount (excluding the investment in Krishna Godavari Gas Network) has been either invested or committed for investments.

Answering a question, Mr Miranda said that IDFC PE would start working on its third fund about a year from now. He expects the fund to be "up and running by the end of 2007".

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