Deccan Chronicle

Kerala Gail Gas Limited to push pipeline project

Deccan Chronicle| k.j. jacob

Published on: May 22, 2015 | Updated on: Invalid date

The company also had plans to supply gas for distributed power generation of up to 20 MW

GAIL Gas Logo

GAIL Gas Logo

Kochi: The state government is actively considering drafting Kerala Gail Gas Limited (KGGL), a joint venture between Kerala State Industrial Development Corporation (KSIDC) and Gail Ltd, to take a leading role in the gas pipeline project.

KSIDC managing director D.M. Beena told Deccan Chronicle on Thursday that Petronet LNG managing director Dr A.K. Balyan had made a suggestion to the state government that it engage one of its agencies for the project.

"The proposal is under the active consideration of the state government," she said. "It will take a decision after discussing it with Gail." It is understood that Petronet LNG may also come on board the company.

Dr Beena said involving the agency would help the project make faster progress. "This would mean the state government taking direct ownership of the project and hence would make a difference," she said.

Dr Balyan had told Deccan Chronicle last week that the state government should not leave the implementation of the pipeline project to Gail alone. "Drafting one of its agencies is one way to overcome the resistance of the people at the grassroots  for the project," he had said.

The state government had formed KGGL mainly to take up the city gas distribution project in Kochi but lost the bid to the IOC-Adani Gas.

The company also had plans to supply gas for distributed power generation of up to 20 MW, last mile connectivity for industrial consumers, CNG distribution and skill development for the gas sector.

However, ever since the company lost the bid for the CGD project, it had lost interest in pursuing  the other objectives. KSIDC and Gail have invested Rs 12 crore each in the company which has an authorised capital of Rs 30 crore.

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