TOI reported that central gas utility GAIL is likely to sign a JV agreement with Greater Calcutta Gas Supply Corporation in the second week of November 2011.

It may be recalled that West Bengal government has recently given its nod for the proposed JV agreement that will help reviving and expanding supply of natural gas as green fuel to automobiles and households.

State government sources said the agreement could be signed in the second week of November. GAIL and Hindustan Petroleum will each hold 37% stake in the JV, while Greater Calcutta Gas will have 26% equity and veto power in the JV board.

Mr BC Tripathi chairman of GAIL said that "We propose to spend up to INR 2,100 crore over the next five years or so in laying new pipelines and building infrastructure."

Mr Prabhat Singh director marketing of GAIL said that the central utility has also proposed setting up a new plant at Dankuni for extracting gas from coal mines there for supplying to Kolkata.

He added that "We have discussed with the state government and Coal India which has the mines, there is an old plant in Dankuni that has been supplying gas to Kolkata. We suggested setting up a new plant there to augment supplies to Kolkata."

Initially, gas tapped from between layers of coal in mines of Ranigunj, Durgapur and Asansol will be supplied in through the existing pipeline network of Greater Calcutta Gas in North and Central Kolkata besides Howrah.

GAIL also intends to invest in building a transmission network for gas imported in ships (LNG or liquefied natural gas) in the state after the Banerjee government indicates a firm demand.

(Sourced from www.timesofindia.indiatimes.com)