GAIL To Set Up New Utilities To Increase Gas Production Capacity
State-run gas company, Gas Authority of India Ltd. (GAIL) is planning to raise the capacity of its Pata petrochemical plant. The capacity would be increased to 800,000 tons in next few years.
The plant has a capacity of 410,000 tons per annum at present. GAIL Chairman and Managing Director, U D Choubey said that the Pata plant in Uttar Pradesh would be expanded by setting up a mega petrochemical plant alongside the existing plant.
A private firm in North Asia and Central Asian states would help GAIL to increase its production capacity. It is speculated that the company intends to seek the services of Reliance Industries.
The company would pay one bonus share for two equity shares to the share holders after attaining the target of the authorized share capital of Rs 2,000 crore. The company would invest Rs 20,000 crore to build new pipelines.
The company intends to transmit300 million standard cubic meters per day of gas in coming years. The company is already working on five new trunk pipelines and two capacity augmentation projects in its plants. It is also setting up a petrochemical plant in Assam with the production capacity of 220,000 tonne per annum.
The profit of the company in Petrochemicals and LPG business is showing positive growth at present. The company has, recently, signed an agreement with Hindustan Petroleum Corporation, Oil India Ltd, Mittal Investments and France's Total to set up a petrochemical complex and crude oil refinery at Visakhapatnam.