Gas Authority of India (GAIL) agreed to form a joint venture with Rajasthan State Petroleum Corporation (RSPCL) under which the former would supply compressed natural gas (CNG) to the state while the latter would assist in setting up the required infrastructure.
While GAIL would have 26 percent stake in the joint venture, RSPCL would have 24 percent share. The rest 50 percent will be contributed by the private investors and financial institutions. Officials from GAIL maintained that signing of MoU is just a stepping stone for the venture and both the partners would make a proper business plan in next one year.
According to the agreement, the state government, through RSPCL, would provide the necessary infrastructure like laying of pipe lines and setting up of stations. Further, RSPCL will act as the nodal agency and facilitate GAIL in acquiring land for stations and develop other necessary infrastructure for city gas distribution network.
The first project of the new firm will kick off from Neemrana, where RSPCL is expected to develop a CNG station for industrial use. The state government also plans to bring pipelines from the existing trunk line of Hazira-Vijaipur-Jagdishpur in the state. This will benefit many industries and domestic users in Rajasthan.
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