New Delhi, September 15, 2009:- GAIL (India) Limited and Kerala State Industrial Development Corporation Limited (KSIDC), Government of Kerala signed a Memorandum of Understanding for Natural Gas Infrastructure and City Gas Distribution in Thiruvananthpuram yesterday. The MoU was signed by Shri J. Wason, Executive Director (Marketing), GAIL and Shri Alkesh Sharma, MD, Kerala State Industrial Development Corporation (KSIDC), Government of Kerala. The MoU was signed in the presence of Shri V. S. Achuthanandan, Hon’ble Chief Minister of Kerala and his senior cabinet colleagues, Shri B. C. Tripathi, Chairman and Managing Director, GAIL and other senior officials of GAIL and the Kerala Government.

Speaking on the occasion, Shri B. C. Tripathi, CMD, GAIL said that the Gas Cooperation MoU between GAIL and Kerala aims to develop the natural gas distribution and city gas infrastructure, to develop the use of eco-friendly fuels, especially Natural Gas/CNG/PNG/R-LNG and to promote a Joint Venture (JV) for domestic, industrial and transport sectors in the state of Kerala.

The two organisations would initiate a joint exercise for immediate assessment of the demand potential of natural gas and allied products in the State. Besides, the cooperation is based on the strategy of API i.e. Awareness, Prevention and Implementation to work towards the goal of clean and green environment.

Under the Cooperation MoU, GAIL will use its technical and commercial expertise to study various options and to evaluate Energy Demand in the state. GAIL and KSIDC will conduct necessary techno-economic studies based on demand potential, including pipelines and City Gas Distribution Networks (CGD) prepare the preliminary Techno Economic Feasibility Report (TEFR) for infrastructure development. The MoU also provides for GAIL and Government of Kerala, to identify industrial clusters for distribution of Natural Gas as fuel and to determine modus operandi for setting up of joint ventures by GAIL in Kerala.

GAIL Board had accorded approval for laying of the 1,114 km Kochi – Kanjirkkod – Mangalore - Bengaluru pipeline at an estimated investment of Rs. 3,032 crore. The design capacity of this pipeline is 16 MMSCMD including 4 MMSCMD as common carrier and the project will be implemented in two phases.

In phase I of the project, 94 km pipeline will be laid from Kochi to Alwaye (Tap-off) with spur lines / feeder lines to Alwaye (SEZ Vyapin Kochi, GTN Textiles), Udyogmandal (Premier Tyre Kalamassery, REL, FACT-I, Sudchemic & Travancore Cochin), Binannipuram (Cochin Minerals & Binani Zinc), Ambalamedu (Kerala Chemicals & Protein Ltd. Kakkanad, FACT-II, BPCL Refinery, Hindustan Organic Ltd., Philips Carbon & MILMA) at an estimated investment of Rs. 267.50 crore. The phase I is scheduled to be completed by 2011-12. The infrastructure will be connected to PLL Kochi which is to be gas source for the markets in the region.

In phase II of the project, 1018  km pipeline will be laid from Alwaye (Tap-off) to Kanjirrkkod, Kanjirrkkod to Mangalore and Kanjirkkod to Palghat / Palakkad with spurlines / feeder lines   to Thrissur (Apollo Tyres), Kottakal (Aryavaidsala), Kozhikode (KESEB Power Plant), Kannur (Western Plywood, Power Projects), Mangalore (MCF) and Palakkad (Indosil, Precoat & steel industries). The phase II of the project will involve laying of pipeline from Palakkad to Bengaluru with spurlines / feeder lines   to Coimbatore and Salem. The phase II of the project will involve an estimated investment of Rs. 2764.50 crore is scheduled to be completed by 2012-13.

GAIL will also be laying 1,389 km Dabhol – Bengaluru pipeline at an investment of Rs. 4543.43 crore. The design capacity of the 30 inch diameter Dabhol-Bengaluru section is 16 MMSCMD and the project will be implemented in two phases which will be connected to the Koch-Kanjirkkod-Bengaluru pipeline.

Photo Caption            

Shri J Wason, Executive Director (Marketing), GAIL (extreme left) and Shri Alkesh Sharma, MD, KSIDC, Government of Kerala exchanging documents after signing of Memorandum of Understanding for Natural Gas Infrastructure and City Gas Distribution in presence of Shri V. S. Achuthanandan, Hon’ble Chief Minister and Shri B. C. Tripathi, Chairman and Managing Director, GAIL