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GAIL signs Gas Cooperation Agreement with Karnataka

New Delhi, April 30, 2009

GAIL (India) Limited and Infrastructure Development Department (IDD) Karnataka today signed a Gas Co-operation Agreement in Bangalore. The Co-operation Agreement was signed by Shri B. C. Tripathi, Director (Marketing), GAIL and Shri Arvind Jadhav, Principal Secretary, Infrastructure Development Department, Government of Karnataka.

The agreement was signed in the presence of Shri Sudhakar Rao, Chief Secretary, Government of Karnataka, Shri V P Baligar, Principal Secretary to Chief Minister, Dr. U. D. Choubey, Chairman and Managing Director, GAIL, and other senior officials of GAIL and the Karnataka Government.

Speaking on the occasion, Dr U. D. Choubey, CMD GAIL said that the Gas cooperation agreement between GAIL and IDD, Karnataka aims to develop the natural gas distribution and city gas infrastructure, to develop the use of eco-friendly fuels, especially Natural Gas/CNG/PNG/R-LNG and to promote a Joint Venture (JV) for domestic, industrial and transport sectors in the state of Karnataka.

In his address Shri Sudhakar Rao, Chief Secretary, Government of Karanataka said that natural gas is a preferred fuel today for environmental and other reasons and with the recent discoveries of new natural gas find as well as the proposed GAIL pipeline to Bangalore, he was confident that the state will now be able to obtain gas for its energy as well as other requirements. He wished all success to GAIL in laying its pipelines to Bangalore
The two organisations would initiate a joint exercise for immediate assessment of the demand potential of natural gas and allied products in the State. Besides, the cooperation is based on the strategy of API i.e. Awareness, Prevention and Implementation to work towards the goal of clean and green environment.

Under the Cooperation Agreement, GAIL will use its technical and commercial expertise to study various options and to evaluate Energy Demand in the state. GAIL and IDD will conduct necessary techno-economic studies based on demand potential, including pipelines and City Gas Distribution Networks (CGD) prepare the preliminary Techno Economic Feasibility Report (TEFR) for infrastructure development.

The Cooperation Agreement also provides for GAIL and IDC, to identify industrial clusters for distribution of Natural Gas as fuel and to determine modus operandi for setting up of joint ventures by GAIL in Karnataka.

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