Friday, Nov 19, 2004
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Rajasthan
By Our Special Correspondent
JAIPUR, NOV. 18. The Gas Authority of India Limited (GAIL) has sent proposals to the Rajasthan Government for making an investment of Rs. 500 crores for supply of liquefied natural gas for industrial, domestic and automobile sectors. GAIL plans to supply 15 million cubic metres of LNG per day to the State. The State Minister for Mines and Petroleum, Laxminarain Dave, said here today that GAIL had submitted a proposal for entering into an agreement for exploitation of deep-rooted lignite reserves, which cannot be used for mining, as part of the underground gasification project. The project will produce gas which can be utilised for establishing power projects. Mr. Dave affirmed that the proposals, if implemented, would bring about a revolution in the State's gas industry and said prompt action would be taken on drafting a memorandum of understanding. The lignite project can be installed in western Rajasthan where the viable reserves are found. GAIL has so far invested about Rs. 1,000 crores in Rajasthan for creating a network of gas pipelines and optical fibre cables, constructing the gas filling stations and supply of power. The company is also setting up a 350 MW power plant based on LNG in Dholpur. Mr. Dave said GAIL had submitted similar proposals to the State Government for Barmer-Sanchore basin for two years in 1998, but there was no progress in implementing the project. GAIL has also proposed to invest Rs. 2,200 crores in West Bengal for supply of gas apparently in an effort to expand its network, despite the oil and gas reserves in that State not being sufficient.
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