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GAIL to step up gas support gas supply to IGL

New Delhi, December 5, 2005. 

GAIL (India) Ltd. and Indraprastha Gas Limited (IGL) today signed an agreement for enhanced supply of 2 MMSCMD of Natural gas to IGL. The agreement was signed by Shri R M Gupta, Director, IGL and Shri K P Roy, Executive Director (Mktg.), GAIL. The documents pertaining to above contracts were formally exchanged between Dr. U D Choubey, Director (Marketing), GAIL and Shri A K De, MD, IGL. The Directors on GAIL Board and senior officials of IGL were present on the occasion.

GAIL and IGL already had an agreement for supply of 0.48 MMSCMD of gas. The increase in contracted quantity to 2 MMSCMD to be supplied by GAIL will enable IGL to expand its network for meeting the ever increasing demand of CNG and Domestic consumers. Presently, GAIL through its joint venture IGL, caters to about 40,000 domestic consumers and this number is now expected to go up to 50,000 by March 2006. Presently, the joint venture company services over one lakh vehicles including a fleet of about 10,800 buses apart from 93,000 other vehicles including auto rickshaws, private cars, taxis and RTVs. With the increased contracted quantity, the JV shall be able to further increase the number of CNG compressor stations for further increasing supply to CNG based vehicles in Delhi for reduction in pollution levels.

IGL is a joint venture of GAIL (India) Limited, Bharat Petroleum Corporation Limited (BPCL) and the Government of National Capital Territory of Delhi. IGL was incorporated to implement the Compressed Natural Gas (CNG) expansion programme and the Piped Natural Gas (PNG) project for varied applications in the domestic and commercial sectors. IGL has created the CNG infrastructure of 140 stations in the NCT of Delhi including 2 in Noida. This well planned infrastructure spread across the length and breadth of the city ensures comfortable fuelling to all its valued customers.

Apart from IGL, GAIL and BPCL have formed another Joint Venture Company, Central U P Gas Limited (CUGL) for implementation of City Gas Projects in Delhi and Kanpur.

GAIL is also a major partner in four Joint Venture Companies (JVCs) namely, Mahanagar Gas Limited, Bhagyanagar Gas Limited, Tripura Natural Gas Company Limited and Green Gas Limited for implementation of City Gas Projects in Mumbai, Andhra Pradesh, Tripura and Agra and Lucknow respectively.

GAIL is in the process of formation of JV company (JVC) with BPCL for implementation of City Gas Project in Pune city and another JV company with HPCL for implementation of City Gas Projects in the state of Madhya Pradesh. The Agreements for these JVCs have been already executed. Moreover, GAIL has signed MOU with HPCL for formation of state wise JVCs for Rajasthan and Gujarat also.

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