GSPL To Set Up 4,000 Km Pipeline Covering Nine States
The BSE and NSE listed company, which clocked Rs. 950 crore during FY 2015-16, has registered a marginal growth during FY 2016-17 at Rs. 977 crore and is looking to achieve Rs. 1,000 crore by the end of this fiscal
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Gujarat State Petronet Limited (GSPL), a natural gas transmission company, is developing cross-country pipeline projects of over 4,000 km covering 9 states through its two subsidiaries i.e. GIGL and GITL. While GIGL is developing the Mehsana -Bhatinda Pipeline (MBPL) & Bhatinda-Jammu-Srinagar pipeline projects, GITL is developing the Mallavarm Bhopal -Bhilwara -Vijaipur (MBBVPL). It is to be mentioned that GSPL owns and operates the largest gas transmission network in Gujarat totalling to approximately 2,454 km (as on 31st March 2017).
Dr. T. Natarajan, JMD, GSPC Group (parent company) told BW Businessworld, “Our gas grid has reached 25 of the 33 districts in Gujarat and the gas is flowing to various industries and City Gas Distribution (“CGD”) networks located in various districts of the state. These new pipelines are a part of the 15,000 km of additional pipelines envisioned by the Prime Minister of India under the National Gas Grid.”
It is to be mentioned that some of the districts already covered by GSPL are Surat, Bharuch, Narmada, Baroda, Anand, Ahmedabad, Dahod, Gandhinagar, Sabarkantha, Panchamahal, Patan, Bhavnagar, Mehsana, Banaskantha, Surendranagar, Botad, Rajkot, Morbi, Jamnagar, Navsari, Kutchh, Kheda, Valsad, Amreli, Gir Somnath etc.
Talking about the capex plans, Natarajan stated, “We have spent around Rs. 5,500 crore during FY 2015-16 and are pumping in around Rs. 5,650 crore during this financial year. Apart from investments required to ensure connectivity of all demand centres in the state of Gujarat with the Gas Grid, we are also exploring opportunities to obtain connectivity /access to greenfield/brownfield terminals in the state. We have also initiated discussions with operators of upcoming domestic fields to ensure early monetization of critical natural resources. ”
The BSE and NSE listed company, which clocked Rs. 950 crore during FY 2015-16, has registered a marginal growth during FY 2016-17 at Rs. 977 crore and is looking to achieve Rs. 1,000 crore by the end of this fiscal. “It is expected that going forward several factors, including increased industrialization and competitiveness of gas vis-á-vis other fuels, would contribute to the increase in usage of gas and lead to improved utilization of infrastructure developed by companies like GSPL,” noted Natarajan
- When queried about its expansion plans, Natarajan stated, “Growth strategy would depend on the kind of opportunity available at the relevant time. We are looking at developing our gas grid for connecting all major demand and supply centres in Gujarat, including connectivity to upcoming LNG import / receiving terminals in the State. Also, at this juncture, development of cross-country pipelines by its subsidiaries, GIGL and GITL, are of prime importance. GSPL shall also be ensuring successful implementation of CGD network projects in the geographical areas of Amritsar & Bhatinda”