GAIL to Invest Rs 141 Crore in CNG Highway Corridor in UP

GAIL Gas Ltd, a unit of state gas utility GAIL India Ltd, today signed an agreement to invest Rs 141 crore in building CNG highway corridors in Uttar Pradesh.

GAIL Gas signed a memorandum of understanding (MoU) with Uttar Pradesh State Industrial Development Corp (UPSIDC) at the UP Investors' Conclave here.

"This MoU will lay the foundation for building up natural gas infrastructure for fulfilling the demand of natural gas, setting up CNG stations along the highway corridor and distribution of gas to various industrial clusters and parks in Uttar Pradesh State," the company said in a statement here.

The investment cost for developing this city gas project is Rs 141 crore, it said.

The MoU was signed by GAIL Gas chief executive Pankaj Kumar Pal and UPSIDC managing director Manoj Singh in presence of UP Chief Minister Akhilesh Yadav and GAIL Chairman and Managing Director B C Tripathi.

GAIL is planning three major CNG corridor projects along the highways -- Delhi-Agra covering 200 kms with 6 CNG station at Kosi, Sikandra, Etawah, Fatehpur Sikri, Vrindavan and Govardhan; Lucknow-Kanpur highway covering 77 kms with 2 CNG station at Unnao and Karanpur-Moradabad-Kashipur-Rudrapur Highway covering 145 kms and 4 CNG station at Chandausi and Rampur.

The Delhi-Agra project will cost Rs 48 crore while Lucknow-Kanpur project will cost Rs 16 crore. The third project will cost Rs 32 crore.

"The CNG corridor will enable the usage of CNG in and outside the city limit and will promote the concept of long journeys on natural gas vehicle," the statement said.

GAIL plans to use mobile cascades to meet demand for natural gas in industrial clusters in Uttar Pradesh. These will cover areas like Shamli, Gajraula, Saharanpur, Kosi, Sikandra, Etawah, Fatehpur Sikri, Vrindavan and Govardhan.

GAIL Gas is a wholly owned subsidiary of nation's youngest Maharatna PSU GAIL (India) Ltd. It was created for implementation of city gas distribution projects across the country.

GAIL Gas has been authorized by Petroleum and Natural Gas Regulatory Board (PNGRB) for implementing CGD projects in Dewas (Madhya Pradesh), Kota (Rajasthan), Sonepat (Haryana), Meerut (Uttar Pradesh), Vadodara (Gujarat) and Taj Trapezium Zone (Uttar Pradesh).

In addition, GAIL Gas is pursuing city gas business in Kerala, Andhra Pradesh, Karnataka, Rajasthan and West Bengal through its Joint Venture.