Public sector GAIL has proposed to incur a capital expenditure of over Rs 49,000 crore during FY2010-14, with a substantial part of it (around 70%) to be incurred in the core gas transmission segment. The plan is to double the length of pipelines and transmission capacity apart from expanding the company?s petrochemicals business.
The company is said to have moved the petroleum ministry seeking waiver from sharing the subsidy burden and is upbeat on a positive response. The company also hopes transportation tariffs from existent pipelines will not decline on account of the upcoming Petroleum & Natural Gas Regulatory Board (PNGRB) regulations.
According to company sources, GAIL is planning to double the current transmission pipeline length of around 7,000 km to 14,000 km by fiscal year 2013. Similarly, transmission capacity would be increased to 300 mmscmd from the current level of 150 mmscmd. As per the proposal, the company plans to add around 443 km in FY2010; 1,609 km in FY2011 and 1,860 km in FY2012.
In Phase-I of the expansion, GAIL will construct the Vijaipur-Dadri, Dadri-Nangal and Chainsa-Hissar pipelines. GAIL expects the pipeline along Vijaipur to Dadri to be completed by December 2009. The pipeline is likely to supply gas to Pragati Power Corporation, which is commissioning a power plant of 750MW for the Commonwealth Games.