GAIL India and MIDC are planning to establish a JV company for distributing gas to industrial consumers in Maharashtra.

The state government had already given nod for the venture. From the date of formation, the JV is likely to take about nine months to become operational. Currently, the equity and debt components are being worked out.

In the Phase I, the JV is likely to tap GAIL's trunk pipe line between Tarapur with Dabhol for distribution to the industrial areas en route. An industrial gas corridor is being envisaged along the trunk line between the two locations.

The MIDC-managed industrial estates are likely to get supply on priority basis, as the right of way in these areas rests with MIDC and hence laying of pipelines will be relatively easy. Gas will also be made available to non-MIDC industrial estates and to residential areas.

Also See:

GAIL mulls pipeline between Puducherry and Karaikal (20-February-10)