(FE)
Gas utility GAIL India is looking to partner with financial and strategic investors for its subsidiaries and joint venture companies in the city gas distribution business, a senior company official told. “In view of the heavy capital expenditure involved in building a city gas distribution network, the company may evaluate proposals from both strategic as well as financial investors in its joint ventures and subsidiaries that are focused on city gas distribution,” the official said.
GAIL has a total of nine subsidiaries and joint ventures that are involved in supplying natural gas in various states across the country. These include Indraprasth Gas, Mahanagar Gas and GAIL Gas. The company has planned a capital expenditure of `54,000 crore over the next three years with a debt to equity ratio of 60:40. The plan is to invest close to Rs 12,000 crore in the CGD business of its own over the next three years to sell compressed natural gas (CNG) to automobiles, and piped natural gas to households in towns such as Varanasi, Ranchi, and Patna.
