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GAIL inks JV pact with KSIIDC

09 Jun 2011 Evaluate

GAIL (India) has signed a Joint Venture (JV) agreement with Karnataka State Industrial & Infrastructure Development Corporation (KSIIDC) to jointly pursue various natural gas related business activities in Karnataka.

The JV pact will lead to the formation of a joint venture company (JVC) which will have an authorized share capital of Rs 100 crore. GAIL will hold 26 percent equity in the company, while KSIIDC will have 24 percent. The balance 50 percent equity will be held by financial institutions, investors and strategic partners.

The JVC will focus on setting up of Natural Gas infrastructure in industrial estates/ areas/ clusters, City Gas Distribution (CGD) networks, distributed power generation projects in industrial areas and gas distribution infrastructure downstream of trunk lines in the state of Karnataka.

GAIL’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.

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