Rajasthan government is evaluating the proposal of Cairn India to partner with Rajasthan State Petroleum Corporation (RSPCL) and Gail to launch city gas distribution (CGD) service in the state, reports indicate.
The state government may take a final decision by this month-end, according to some media reports. The company could be a good fit as the original contours of the JV between RSPC and Gail did envision a 50 percent contribution from private investors.
Late last year, Gail and RSPCL decided to form a joint venture for city gas distribution venture with the former contributing 26 percent stake while the latter 24 percent stake. The proposed joint venture was named Rajasthan State Gail Gas Company, where RSPCL is the nodal agency and facilitates Gail in acquiring land for city gas infrastructure.
Initially, the distribution company may use Gail's existing pipeline infrastructure to transport and market the gas, and once production picks up, the firm may set up new pipelines.
The new company will also bring pipelines from the existing trunk line of Hazira-Vijaipur-Jagdishpur in the state and will also bid for CNG stations in the PNGRB auctions.