THIRUVANANTHAPURAM: GAIL Gas Limited, a subsidiary of GAIL (India) Limited, and Kerala State Industrial Development Corporation (KSIDC) signed a share-holders agreement (SHA) on Friday to pursue city gas distribution project in Kerala.The agreement was signed by M Ravindran, CEO, GAIL Gas and Alkesh Kumar Sharma, MD, KSIDC in the presence of Chief Minister Oommen Chandy and GAIL chairman and managing director B C Tripathi.GAIL (India) Limited is developing Natural Gas Infrastructure in Kerala in view of the impending availability of Natural Gas in the state. The joint venture company, Kerala GAIL Gas Limited, will be incorporated soon and will have an initial authorised share capital of Rs 100 crore. GAIL Gas Limited will hold 26 per cent equity in the company while KSIDC will have 24 per cent. The rest 50 per cent equity has been kept for strategic partners, financial institutions (Indian or international) and non-government companies.Kerala GAIL Gas Limited plans to take up city gas distribution activities throughout the state by participating in the bidding process of Petroleum and Natural Gas Regulatory Board (PNGRB).There are 14 Geographical Areas (GAs) in Kerala - each district is being considered as one GA.The company intends to supply environment friendly, economical and convenient compressed natural gas (CNG) to vehicles and piped natural gas (PNG) to households, commercial establishments and industries.Detailed feasibility report (DFR) and business plans for Ernakulam and Kozhikode have already been prepared for which bids are to be submitted shortly to PNGRB. Subsequently, the company will prepare business plans for the balance 12 GAs.Kerala GAIL Gas also plans to set up CNG stations at bus depots of Kerala State Road Transport Corporation (KSRTC) and supply natural gas to power plants, cold storage units and wind power plants.The company is likely to have a capex investment of the order of Rs 250 crore by its fifth year and Rs 1,000 crore by the 25th year.It is laying the Kochi-Koottanad-Bangalore-Mangalore pipeline which is passing through the states of Kerala, Karnataka and Tamil Nadu.
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