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GAIL approves Rs 8,000 cr pipeline projects

Last Updated: Monday, July 27, 2009 - 15:55

New Delhi: The GAIL board has approved Rs 8,000 crore pipeline projects to be implemented by 2012, company Chairman U D Choubey said on Monday.
GAIL will raise Rs 2,000 crore from the domestic market this fiscal, Rs 5,000 crore next fiscal mostly through external commercial borrowing, and Rs 10,000 crore in 2011-12, GAIL Director (Finance) R K Goel said.

GAIL will lay 2,050-km pipeline from Jagdishpur in Uttar Pradesh to Haldia in West Bengal at an investment of Rs 7,595 crore, company Chairman U D Choubey told reporters here.

Besides, two separate spur lines will be laid to Baurani and Chappra.

GAIL will also lay Moradabad-Kashipur-Rudrapur and enhance capacity of Agra-Ferozabad line.

Goel said the company had a debt-equity ratio of 0.12:1 and it can leverage its balance sheet to raise Rs 14,000 crore.

"This fiscal, we plan to raise Rs 2,000 crore from domestic market. Next fiscal, the company will raise Rs 5,000 crore from domestic and overseas market. In the following year it will be Rs 10,000 crore," he said.

Bureau Report

First Published: Monday, July 27, 2009 - 15:55
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