KSIDC ties up with Gail Gas for JV project

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Kochi: The Kerala State Industrial Development Corporation Ltd (KSIDC) has tied up with Gail Gas Ltd. to set up a joint venture company, Kerala Gail Gas Ltd. (KGGL) to implement supplementary gas infrastructure in Kerala. KGGL will also be setting up a Gas Training Institute at Angamaly, near Kochi on land to be provided by KSIDC.

As per the feasibility report, the project cost is estimated at Rs2,000 crore. Gail Gas Ltd. will have 26 per cent equity and KSIDC will have 24 per cent equity in the joint venture company formed with the remaining shares offered to financial institutions and or strategic investors.

According to the business plan prepared for the joint venture project, the company will promote city gas distribution projects, lay spur line to provide last mile connectivity to bulk / large consumers of natural gas, set up CNG stations for KSRTC buses in depots, CNG Stations for boat services, market gas related equipments and set up captive gas-based power plants in Kerala.

The Gas Training Institute will be a Skill Development Centre for technicians and others in the natural gas business and will conduct short-term courses for skill development. KGGL also intends to promote a gas-based power plant for the steel cluster at Palakkad, jointly with the Steel Manufacturers’ Association. The CNG Stations will be established in Kochi first since natural gas will be available here within one year time.

Kerala Biz News

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