GAIL’s Kailaras – Malanpur pipeline gets going

Malanpur (M.P.), December 3, 2005 GAIL’s Kailaras – Malanpur Pipeline project gets going with Shri Jyotirditya Scindia laying the foundation stone at Malanpur Industrial area, District Bhind, Madhya Pradesh. Shri Ramsewak Singh, MP, Gwalior, Shri Proshanto Banerjee, Chairman and Managing Director, GAIL (India) Limited along with other senior officials of GAIL were present on the occasion.

The 87 km long pipeline will be completed by end July 2006 at an investment of Rs. 92 crores. The design capacity of pipeline is 2 MMSCMD. The pipeline will enhance the availability of natural gas for the gas based industrial units such as Godrej Consumers, Hotline, Surya Roshni, Cadburys etc. and other industrial users in the Malanpur and Gwalior region. The gas supplied through this pipeline will also support the city gas distribution projects in the city of Gwalior. The Kailaras – Malanpur pipeline is linked to the Hazira – Vijaipur – Jagdishpur (HVJ) and the Dahej – Vijaipur pipeline (DVPL) systems.

GAIL (India) Ltd has a significant presence in the state of Madhya Pradesh and has made an investment of Rs 4,612 crore. GAIL’s gas pipeline network in Madhya Pradesh comprises of over 1,150 kms pipelines and associated compressor stations at Jhabua, Khera and Vijaipur. GAIL is now laying a 135 km long pipeline from Jagoti to Pithampur via Indore at an investment of Rs. 195 crore. This pipeline is designed to transport gas to the cities of Dewas, Ujjain, Indore, and Pithampur.

GAIL also has its largest LPG recovery plant at Vijaipur which was constructed at a total cost of Rs 458.74 crore. The plant has an installed capacity of 4,12,000 MTPA of Liquefied Petroleum Gas (LPG); 1,30,000 MTPA of Propane, 40,000 MTPA of Pentane and 27,000 MTPA of Special Boiling Point (SBP) Solvent. The LPG production from this plant roughly converts in to twenty seven million domestic LPG cylinders annually.

In addition to its gas business, GAIL is an important player in petrochemical business having 22 percent market share in the state. The company marketed approximately 8,500 MT of LLDPE & HDPE in the state in FY 2004-05.

GAIL’s MP operations have contributed Rs.179 crore in the FY02-03 and Rs. 196 crore in FY 03-04 to the Government exchequer.

As a socially responsible corporate, GAIL has also undertaken various activities under its CSR (Corporate Social Responsibility) programme and GAIL spent over Rs. 11 crore in various CSR initiatives in MP upto FY 2004-05. The major activities included setting up of a 30 bed Maternity and Child Care Hospital for tribals at Jhabua, construction of a 50-bed hospital and providing mobile healthcare clinic services at Vijaipur, construction of

series check dams and ponds and initiation of rain harvesting programme to store rain water at Vijiapur, providing well and water tanks at Khera (Ujjain) and Jhabua, construction of a school building in Khera and providing scholarship to meritorious tribal students at Jhabua. GAIL is also setting up Air Pollution Related Disease Diagnostic Centres in association with reputed hospitals at Gswalior, Indore and Ujjain.

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, Kazakastan, 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.

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