The same study would also look into the pipeline and other infrastructure needed for gas marketing, considering interalia various gas supply sources for ensuring long term supplies at competitive prices. Mantralaya sources told The Financial Express on Thursday that GAIL, which would use its technical and commercial expertise, would take the third party assistance to carry out the proposed study. GAIL has agreed to bear the costs for preparing the preliminary techno-economic feasibility report for gas infrastructure development and associated facilities in the state.

The joint working group would also be set up comprising representatives of MIDC, MPCL and other state departments. GAIL director (planning) would co-chairman of the proposed joint working group which would headed by the principal secretary of state industry department. This group would submit the first draft of the study report within five months since its formation.

GAIL would undertake the development of pipeline infrastructure and associated facilities alongwith organisation of gas supplies after completion of the techno-economic feasibility study. "These projects would be undertaken subject to approval of the project by the concerned authorities," the sources added. According to the gas co-opertion agreement, GAIL would bear the cost of developing pipeline infrastructure and associated facilities "subject to aggregation of anchor gas demand load."

The joint working group (JWG) would discuss with existing gas supplies such as Oil & Natural Gas Corporation (ONGC) and companies awarded exploration blocks under new exploration licensing policy. At present, Maharashtra receives 10 million meters per day especially when its total requirement is of 17 million meters per day. Similarly, the JWG would also hold talks with Metgas (Dabhol LNG Terminal) and India Natural Gas Pvt Ltd (Trombay LNG Terminal) on their plans for import of liquified natural gas (LNG) in the state and gas marketing.