GAIL India will set up a separate subsidiary for sale of CNG to automobiles and piped gas to households and has identified 17 cities for such projects These projects will entail an investment of Rs.500 crore.

The subsidiary company will have an equity of Rs.200 crore and borrow another Rs.300 crore for the projects. It will take up distribution and marketing of CNG as fuel for vehicles (inter-city as well as intra-city), piped natural gas for domestic/ commercial/ industrial purposes and auto LPG as fuel for transport vehicles in various cities in India and abroad.

The subsidiary company will also take up investment in and setting up of infrastructure in various cities of India and along the national highways for building CNG corridors which includes, among others, natural gas compressor stations, laying of the pipelines from city gate station(s) to the consumption areas and associated facilities, setting up of distribution points / retail outlets for CNG/ Auto LPG and transport gas through mobile cascades/ lorries. It will also carry out allied retail business activities at CNG/Auto LPG retail outlets within the cities and along the highways.

The subsidiary will also form alliances with gas producers/ strategic partners for implementation of the city gas projects as per the strategic decisions taken by GAIL.