GAIL, IOC Ties Up For Gas Distribution

KOLKATA: Gail (India) Ltd has formed a joint venture with Indian Oil Corporation (IOC) for gas distribution in Kolkata and other towns. The new company will be incorporated shortly, and the estimated investment would be around Rs 500 crore. GAIL and IOC will hold 22.5 per cent each. Other equity partners are West Bengal government (five per cent) and financial institutions (50 per cent). Gas distribution will be possible only after completion of Jagdishpur-Haldia pipeline in 2011. In the meantime, GAIL would make efforts to source coal bed methane (CBM) from the Asansol region, following which it would be distributed in cylinders after compression.