Press Releases

[New Delhi, 22nd July 2005]

GAIL Board approves investment of Rs. 500 crore in the Ratnagiri Gas and Power Private Limited

New Delhi, 22, July 2005. The Board of Directors of GAIL which met today has approved an equity contribution of Rs. 500 crore in the Ratnagiri Gas and Power Private Limited (RGPPL), a company which was incorporated on the 8th of July 2005 as a 50:50 joint venture between GAIL and NTPC for taking over the assets of the Dabhol Project. The investment will be made after the approval by the Cabinet Committee on Economic Affairs.

With this, both GAIL and NTPC have approved investment of Rs. 500 crore each as equity contribution in the RGPPL and soon the process of transfer of assets through the Debt Recovery Tribunal (DRT) route would get started. Upon completion of such asset transfer, RGPPL will undertake construction and commissioning activities of the power plant as well as the LNG terminal with a target to achieve completion by the second half of 2006.

As a promoter, GAIL’s role will be to source the LNG required to run the power plant of RGPPL as well as for the merchant sale of RLNG. The capacity of the LNG terminal is 5 MMTPA, of which 2.1 MMTPA would be required for the Power Plant. GAIL will be developing necessary infrastructure to sell 2.9 MMTPA R-LNG in the gas-starved markets of Western India after payment of mutually agreed regasification charges to RGPPL.

About GAIL (India) Limited

GAIL, a natural gas major, is focused on all aspects of the gas value chain including Exploration and Production, Gas Marketing and Transmission, Gas Processing, LPG Production, Petrochemicals and telecom. The company has also extended its presence in power, LNG re-gasification, city gas distribution and E & P through Equity/JV participations. Under its globalization initiatives, GAIL has already taken equity participation in three retail gas companies in Egypt i.e Fayum Gas Company, NATGAS and Shell CNG, Egypt and acquired 10 per cent equity in China Gas Holdings in China. GAIL is pursuing business opportunities in countries like Egypt, China, Iran, Myanmar, Russia, Kazakhstan, Bangladesh, Turkey, and Romania in the areas of exploration and production, gas transmission, CNG and city gas distribution, LNG and petrochemicals. GAIL is also playing a key role in the area of Cross Border Pipelines in bringing Pipeline gas into India. GAIL has set up a wholly- owned subsidiary company viz GAIL Global (Singapore) Pte Ltd in Singapore.