GAIL inks pact with Uttaranchal Industrial Development Corproation
Dehradun, 07.11.2005: GAIL (India) Limited and State Industrial Development Corporation of Uttaranchal Ltd (SIDCUL) have entered into a Gas Cooperation MOU to jointly examine various project opportunities for natural gas in Uttaranchal and undertake development and extension of National Gas Grid to the State of Uttaranchal. The agreement was signed by Dr. U. D. Choubey, Director (Marketing), GAIL and Shri Alok Kumar, MD (SIDCUL) today in presence of Shri Narayan Datt Tiwari, Hon’ble Chief Minister of Uttaranchal and Shri Proshanto Banerjee, Chairman and Managing Director (GAIL). Other senior officials of the State and GAIL were also present on the occasion.
Speaking on the occasion, Shri Narayan Datt Tiwari said that it has constantly been his endeavour to create infrastructure in order to promote Uttaranchal as an attractive destination of industrial development. He informed that in the last two three years, more than Rs. 15,000 crores have been invested by industrial houses. This has led to an annual growth rate in manufacturing sector to a blistering 19% and is slated to rise further in the next two financial years. As the industrial activities take root, the fuel requirement is expected to rise sharply. Given the environment sensitivity and the need for ecological preservation, it is a strategic necessity to consider gas as one of the potential alternatives to meet the energy needs of the state.
Shri Ramachandran, Chief Secretary, Uttaranchal said that it is undeniable that gas is one of the most environmentally fuels that exist today and given the fact that Uttaranchal is environmentally very sensitive, it is essential that the state takes a lead in ensuring availability of clean and cheap source of energy for its economic activities. The signing of this MoU is a significant step in this direction; besides addressing the broader strategic concern of energy security of the State in long run.
Speaking on the occasion, Shri Proshanto Banerjee, CMD GAIL highlighted about GAIL’s activities. He emphasized for early demand survey of Natural Gas in Uttaranchal so that infrastructure for the state could be planned well in advance for synchronizing with availability of LNG for the State. He also mentioned that Natural Gas being clean fuel would be best energy option for overall socio-economic growth of the State.
The Gas Cooperation MOU signed between India’s largest Gas Company, GAIL under Ministry of Petroleum and Natural Gas and SIDCUL, a nodal agency for industrial development of Uttaranchal will facilitate development of Gas distribution infrastructure in the State. The gas cooperation agreement will initiate a joint exercise for assessment of the demand of natural gas and allied products in Uttaranchal, promote usage of Natural gas, Compressed Natural Gas (CNG), Piped Natural Gas (PNG) and Regasified Liquified Natural Gas (RLNG) in the state. This MOU will also examine the possibility for utilizing GAIL’s telecom infrastructure for connectivity across industrial conglomerates.
GAIL’s existing HVJ trunk pipeline networks in the neighbouring state of UP will have the nearest tapping point at Bareilly from where clean fuel like natural gas could be made available in Uttaranchal via two proposed routes. The first route will lay a 95 Km pipeline network to Rudrapur, Ramnagar and Haldwani from Bareilly in UP. The other route as envisaged is an extension of gas pipeline from Dadri / Noida to Haridwar and then to Dehradun after laying a pipeline of 200 Km length. As per the preliminary survey carried out by GAIL, an initial demand of 2.13 mmscmd of natural gas is projected after considering both the routes, assessing the existing industries in the region, which will increase substantially in view of increased demand in industrial, commercial, domestic and CNG sectors.
GAIL is planning to market LPG from First April 2006 and it is expected that Uttaranchal will be a good market for domestic LPG Supply. GAIL is already selling polymer in Uttaranchal and looking into increasing demand of its petrochemical products by improving the availability situation of polymer products in the state. Polymer grades produced by GAIL could play a vital role in combating the menace of deforestation in the state. GAIL’s polymer grades have wide ranging applications from doorframe to water storage tank made from polymer. GAIL would also facilitate development of Plastic Park in the state that will act as a catalyst for both entrepreneurs and consumers of plastic in producing and sourcing high quality, environment friendly polymers. GAIL is also selling Propane, a high quality fuel in Kashipur, Rishikesh Industrial area besides, tying up with upcoming industrial units at Haridwar, Rudrapur and Pantnagar industrial areas. GAIL is also looking at the significant demand for the telecom bandwidth from cellular operators in the state and making all arrangements to establish a fibre presence in the state. Through a swapping arrangement with Tata Teleservices, GAILTEL network, the telecom arm of the GAIL will have presence in Dehradun and Haridwar. The telecom network will also have connectivity in the other major industrial locations like Rudrapur and Haldwani.
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. For the first time, GAIL is making a foray in Crude Oil Transmission, by pursuing an opportunity in establishing a Pipeline from Samsun to Ceyhan in Turkey. GAIL has set up a wholly- owned subsidiary company viz GAIL Global (Singapore) Pte Ltd in Singapore.
About SIDCUL
SIDCUL has been established to serve and assist in the expeditious and orderly growth and development of industries in the state of Uttaranchal and has been functioning as a premier agency of Govt. of Uttaranchal for promotion of Industrial and Infrastructural Investment in the State. SIDCUL has been mandated by the Government of Uttaranchal to explore means to make available Natural Gas and its variants as an environment friendly fuel for the rising energy needs of its industry and the people.