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Journalism of Courage
GAIL would hive off its gas trading business into a separate company by 2008. By this time, the ambitious Rs 20,000 crore national gas pipeline grid would be in place.
Talking to reporters, Gail chairman and managing director Proshanto Banerjee said, ‘‘For Gail to become a national gas transmission company and develop confidence of producers and users, we plan to separate the trading business by creating a Chinese wall between transmission and marketing functions.’’
Hiving off gas trading business into a separate company would be achieved in stages beginning with separation of accounts, creation of strategic business unit (SBU) and finally a separate corporate entity that becomes listed on major bourses, he said adding separation of accounts has begun from 2003-04. While the new entity, whose name is yet to be decided, would be responsible for purchasing gas from producers and importers and selling to consumers, Gail (India) would retain business such as pipeline transportation, LPG production, petrochemicals and telecom.
The proposed 7,900-km national gas grid would be ready by 2008. The national gas grid would include 610-km Dahej-Vijaipur pipeline, 520-km Dahej-Uran, 1250-km Kakinada-Hyderabad-Pune, 1150-km Kakinada-Kolkata, 580-km Kakinada-Chennai, 500-km Chennai-Bangalore, 900-km Dabhol-Bangalore-Coimbatore-Kochi and 980-km Kolkata-Jagdishpur pipeline.
