GAIL profits up 7, to enter telecom sector

NEW DELHI, MAR 31: Gas Authority of India Ltd GAIL today announced a seven per cent growth in its gross margins at Rs 1,520 crore during...

NEW DELHI, MAR 31: Gas Authority of India Ltd GAIL today announced a seven per cent growth in its gross margins at Rs 1,520 crore during the current fiscal and said the gas major was planning to enter the lucrative telecom sector.

quot;GAIL has invited offers of interest from telecom companies and the response has been quite good and preliminary offers received are being examined and evaluated along with the various options for entry into the sector,quot; Prasad said.

He said the company is also considering tying up with other major companies having access to right of way like Powergrid for providing a nation-wide intergrated communication grid for telecom operators.

GAIL would be investing about Rs 100 crore and could later think of forming a separate joint venture or a subsidary company, company sources said. The company during the period 1999-2000 had handled 60.20 million metric cubic meters of gas per day as against 57.64 million metric cubic meters of gas and currently has projects worth over Rs 2.000 crore in hand, Prasad said.

quot;GAIL would take up projects including Jamnagar/Kandla Loni LPG pipeline, the LPG plant at Gandhar and the expansion of the pipeline network in the Krishna Godavari and Cauvery basins,quot; he said.

With regard to future plans, Prasad said GAIL had drawn up plans for investment and expansion in various areas including exploration and production, import of gas through pipeline or in the form of LNG.

GAIL is examining various possibilities for import of gas as there has been a renewed interest from Iran on the pipeline project and some fresh discussions have been held with Iran on alternate pipeline routes, he said.

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quot;The company has also presented its proposal to the Andhra Pradesh Government for setting up an import terminal at Kakinada,quot; he said. Prasad said the company was examining the offers invited by a Middle East operator for operations and maintenance of its over 1000 kms gas pipeline and GAIL is also considering opening of representative offices in countires in West Asia and South East Asia.

On the long term, the company is also planning to enter the gas hydrates and coal bed methane sector, he said adding regarding the area of in-situ gasification of lignite in Rajasthan discussion were in the advanced stages with some international companies.

The company is also planning expansion of its Pata Petrochemical plant in Uttar Pradesh for which GAIL would be investing about Rs 1,000 crore, Prasad said. GAIL proposes to invest over Rs 3,500 crore in strengthening its gas pipeline system network, he said.