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Adani to pick up 20% in Green Gas

12 Aug 2011 Evaluate

Gujarat-based Adani Gas, an arm of Adani Enterprise, will pick up 20 per cent equity in Green Gas Limited, a joint venture between Gail and the Indian Oil Corporation (IOC). Green Gas supplies city gas and compressed natural gas in Agra and Lucknow in Uttar Pradesh. Gail and IOC hold 22.5 per cent each in the company, while Uttar Pradesh State Industrial Development Corporation holds five per cent. Aditya Vikram Birla Group and financial institutions IDFC and UTI together hold 50 per cent stake in Green Gas. Both the company would merge their assets and work in collaboration.

IOC and Gail decided that Adani Gas may be inducted as a strategic partner in Green Gas on account of their gas pipeline infrastructure in Lucknow. The combined infrastructure of both companies is expected to provide ready infrastructure to service most parts of the city. Adani had spent around Rs 65 crore to lay steel and plastic pipelines for around 60 kilometre in Lucknow. The company, however, had to suspend work midway as it failed to source gas and was subsequently forced to stop work after an intervention by the Petroleum and Natural Gas Regulatory Board in 2009. Green Gas has syndicated a term loan of Rs 153.6 crore to finance the ongoing city gas distribution expansions and capital expenditures.crackcrack

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