Gas Authority of
India (GAIL) signed a gas cooperation MoU with Punjab State Industrial
Development Corporation (PSIDC) on 29th October 2002, for
development of gas pipeline network and marketing of natural gas in Punjab, at
a cost of Rs.1,000 crore. The project will be completed in a period of two years.
The MoU was
signed by Mr HP Chandna, Director-Planning, GAIL and Mr Viswajeet Khanna, MD,
PSIDC in the presence of Punjab chief minister, Mr Amarinder Singh and Minister
for Industry and Commerce, Mr Avtar Henry.
The gas pipeline,
which would cover a distance of about 450 km in the first phase, would be laid
from Delhi to Ludhiana, The second phase of the project would see an extension
of the pipeline to Amritsar, which would link major towns and industrial hubs
including Ludhiana, Mandi Gobindgarh, Khanna, Nangal, Bathinda, Sangrur,
Patiala, Jalandhar and Amritsar.
While 40 per
cent of the gas coming into Punjab would go to the power sector another 40 per
cent would be utilised in the fertiliser sector. The remaining 20 per cent gas would
go to the industry and the domestic sector.
GAIL’s
investments in Punjab would primarily be done through internal accruals.