BL reported that GAIL Gas a wholly owned subsidiary of GAIL (India) and Kerala State Industrial Development Corporation have agreed to pursue city gas distribution opportunities in the State.

The two entities signed an agreement to set up joint venture Kerala GAIL Gas Ltd. As per report Kerala GAIL Gas will be incorporated soon and will have an initial authorised share capital of INR 100 crore.

GAIL Gas Ltd will hold 26% equity in the company and the KSIDC 24%.

The balance 50% equity has been kept for strategic partners, financial institutions (Indian or international) and non-Government companies.

Kerala GAIL Gas plans to take up city gas distribution activities throughout the State by participating in the bidding process of Petroleum and Natural Gas Regulatory Board.

(Sourced from BL)