GAIL, the country’s biggest gas marketer is likely to foray into natural gas-based power generation. The company has received its board’s approval for the same. It will set up its first power plant at Uran in Maharashtra with an investment of around Rs 800 crore. The plant will have a 250-megawatt (Mw) capacity.
The company is discussing with PTC India to facilitate power trading and is in the process of signing a power purchase agreement with the state power department. The company is planning to set up power projects of similar capacity at Vijaipur in Madhya Pradesh, Auraiya in Uttar Pradesh and Gandhar in Gujarat. GAIL India already has land and manpower, among other infrastructures, at these locations, which also have the company’s LPG plants and gas pipeline.
The four plants would require 2.5 million standard cubic metres of gas a day. Due to limited gas availability from domestic sources, the company will have to depend on imported gas for power generation.
The company’s net profit for the fourth quarter has declined 14.03% at Rs 783.07 crore as compared to Rs 910.82 crore for the quarter ended March 31, 2010. Its total income has soared by 34.34% at Rs 8961.41 crore for the quarter under review from Rs 6670.69 crore in the corresponding previous quarter.
| Company Name | CMP |
|---|---|
| GAIL India | 165.60 |
| Gujarat Gas | 383.05 |
| Indraprastha Gas | 164.55 |
| Mahanagar Gas | 1129.20 |
| Adani Total Gas | 627.00 |
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