Gas Authority of India Limited (GAIL) and Government of Bihar signed a Gas Cooperation Agreement (GCA) for Natural Gas Infrastructure and City Gas Distribution on 23 October 2013.
The Gas Cooperation Agreement was signed in the presence of Nitish Kumar, Chief Minister of Bihar, Renu Kumari Kushwaha, Minister for Industries and B. C. Tripathi, Chairman and Managing Director of GAIL India Ltd.
Highlights of the Gas Cooperation Agreement (GCA)
• GAIL and the Bihar Government will evaluate the feasibility for cooperation for the development of the use of eco-friendly fuel, especially natural gas, in the state as well as development of natural gas distribution and city gas infrastructure in identified urban areas and cities after obtaining due authorization from the Petroleum and Natural Gas Regulatory Board (PNGRB).
• GAIL and Industries Department, Bihar will also work towards promotion of joint venture for City Gas Distribution projects for domestic, commercial, industrial and transport sectors with the participation of GAIL or its wholly owned subsidiary GAIL Gas Limited and concerned departments of the Bihar Government, other state agencies or private players.
• Natural Gas Demand Assessment and Preliminary Techno Economic Feasibility Study will be undertaken for evaluation of medium and long term gas demand potential for the state for industrial, commercial, transport and residential sectors; assessment of pipeline infrastructure and associated facilities required for supply of natural gas including optical fibre network and evaluation of natural gas supply options to Bihar on a long-term and competitive basis.
GAIL is constructing the 2050 Kilo meters gas pipeline from Haldia in West Bengal to Jagdishpur in Uttar Pradesh of which about 621 Kilo meters will pass through 14 districts of Bihar.
The mainline of the Haldia Jagdishpur will cover 4 districts of Bihar such as Kaimur, Rohtas, Aurangabad, Gaya and 10 districts for the spur lines. GAIL will explore the possibility of City Gas Distribution in major towns of Bihar along this pipeline route.
The GAIL India Ltd had in the past signed similar agreements with several states like West Bengal, Karnataka and Tamil Nadu.
About Gas Authority of India Limited (GAIL)
• GAIL (India) Ltd was incorporated in August 1984 as a Central Public Sector Undertaking (PSU) under the Ministry of Petroleum and Natural Gas (MoP&NG).
• Gas Authority of India Limited is the largest state-owned natural gas processing and distribution company.
• GAIL is a Maharatna Company.