GAIL-RIL JV on backburner
State-run gas transportation company GAIL has put its plan to set up petrochemical complex in joint venture with RIL abroad and has instead decided to invest Rs 8,200 crore to ramp up the capacity of its petrochemical plant to 90,000,00 tonnes per anum.
“The expansion will take 42 months to complete, but GAIL will endeavour to commission the unit in 36 months,” said B C Tripathi, chairman and managing director. Asked about GAIL’s plans for setting up a mega gas-based petrochem unit in a joint venture with RIL, Tripathi replied “We had plans and had even short-listed a few countries. But looking at global situation, we have decided not go ahead with the project for the time being. The project has been put on the back burner.”
GAIL India’s profit before tax witnessed 34 per cent jump as it grew from Rs 987 crore in the first quarter of FY10 to Rs1322 crore in the first quarter of FY11. The company’s turnover also increased from Rs 6039 to Rs 7096 in Q1 this year. The net Profit during the 1st quarter of FY 2010-11 increased by 35 per cent to Rs 887 crore against Rs 656 crore in the corresponding period previous year.
GAIL has shared Rs 445 crore towards LPG and Kerosene subsidy in the first quarter of the current financial year as compared to Rs 75 crore during the corresponding previous year quarter.
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