BS reported that Gujarat State Petronet Limited, subsidiary of Gujarat State Petroleum Corporation, will invest around INR 2,500 crore in laying 850 kilometer of gas pipelines in 2008.

Mr PPG Sarma executive director of GSPL said that "We will expand our pipeline network to 2,000 kilometer from the current 1,145 kilometer within Gujarat. The cost of laying the pipelines would be approximately INR 3 crore per kilometer. We have pipeline networks till just about 50 kilometer away from Maharashtra. There are many companies we are talking to."

He added that out of the 850 kilometer pipeline expansion, work has already started on a 300 kilometer stretch. He said that the pipeline would transport gas from GSPC offshore gas discovery to consumption centers in Gujarat.

Mr Sarma said that GSPL is also in talks with various companies to set up JVs for retailing gas to kitchens and vehicles in cities in Maharashtra and Rajasthan. The city gas distribution policy will be finalized by the Petroleum and Natural Gas Regulatory Board. The draft policy however envisages that all gas projects, including city gas distribution and pipeline projects, will be built by a company which wins the project on a competitive bidding process.