Gail and KSIDC will set up a joint working group to evaluate potential consumers, the demand pattern and required pipeline network required to serve them for ensuring long term supplies at competitive prices, according to KSIDC managing director Jiji Thomson. Gail will also examine the feasibility of laying optic fibre cables along the pipeline as part of its proposed country-wide telecom infrastructure as a category-II bandwidth provider. The pipeline system would be handling initially about 10 million stand cubic metres of gas per day, which would be further increased to 20 million standard cubic metres of gas per day. In addition, the setting up oil end use facilities, including power and fertiliser plants and other industrial units would involve new investments of the order of Rs 10,000 crore in the state, he added.

Gail which has a gas pipeline network of over 4,200 km in the country, has a 95 per cent share of the gas market. It will utilise its technical and commercial expertise to conduct a preliminary techno-economic study. KSIDC will assist Gail in the techno-economic study and will coordinate grant of all necessary clearances required for the development of the gas pipeline infrastructure and associated facilities.