Annual Report - 2005-06 - GAIL (India)

GREEN GAS LIMITED (GGL):
MAHANAGAR GAS LIMITED (MGL):
MGL, a Joint Venture
with British Gas (BG)
and Government of
Maharashtra, was
incorporated in May
1995. It has a set up
of 118 CNG stations
catering to over 1,70,000 vehicles besides
supplying PNG to 2,51,000 domestic, 790
commercial and industrial consumers.
Your Company holds a 49.75% stake in
the Company at an investment of Rs.44.45
Crores.
INDRAPRASTHA GAS LIMITED (IGL):
IGL, a Joint
Venture with
Bharat Petroleum
Corporation
Limited (BPCL) and
Government of
National
Capital Territory
(NCT) of Delhi was formed in December
1998. Your Company holds 22.5% stake in
the Company at an investment of Rs.31.50
Crores. IGL is supplying piped gas to 44,350
domestic, 219 commercial consumers and
CNG to over 1,06,000 vehicles through
144 CNG Stations. IGL is catering to the
world’s largest CNG bus fleet in Delhi. It is
also listed on the National Stock Exchange
of India Limited, having a share price of
Rs.145.55 on 31st March, 2006.
BHAGYANAGAR GAS LIMITED (BGL):
BGL is a Joint Venture
with Hindustan Petroleum
Corporation Limited (HPCL)
incorporated in August 2003.
BGL is currently operating 3
Auto LPG stations in Hyderabad
and 1 Auto LPG stations in
Tirupathi. Besides this, it is also operating 3 CNG
stations in the city. Your Company holds 22.5%
stake in the Company. At present an investment of
Rs.9.99 Crores has been made in the Company.
TRIPURA NATURAL GAS COMPANY LIMITED
(TNGCL):
TNGCL is a Joint Venture of
Tripura Industrial Development
Corporation and Assam Gas
Limited and was acquired by
GAIL by taking 29% equity
stake in August 2005. TNGCL is
presently supplying gas to 6001
domestic, 103 commercial & industrial consumers
in Agartala city. The Company is also setting up CNG
stations for transport sectors in Agartala city.
CENTRAL U.P. GAS LIMITED (CUGL):
CUGL is a Joint Venture of
GAIL and Bharat Petroleum
Corporation Limited (BPCL) and
was incorporated in February
2005 for implementation of City
Gas Projects in Kanpur city. It
is currently under the process
of development of infrastructure. Your Company
has a 22.5% stake in the Company. At present an
investment of Rs.5.01 Crores has been made in the
Company (including advance).
GGL is a Joint
Venture
Company of
GAIL and Indian
Oil Corporation
Limited (IOCL) and
was incorporated
in October 2005 for
implementation of City Gas Projects
in Agra & Lucknow cities. It is currently
under the process of development of
infrastructure. Your Company has a
22.5% stake in the Company.
MAHARASHTRA NATURAL GAS
LIMITED (MNGL):
MNGL is a Joint Venture
of GAIL and Bharat
Petroleum Corporation
Limited (BPCL) and was
incorporated in January
2006 for implementation
of City Gas Projects in Pune city. It
is currently under the process of
development of infrastructure. Your
Company has a 22.5% stake in the
Company.
RATNAGIRI GAS AND POWER
PRIVATE LIMITED (RGPPL):
Your Company has been pursuing
Mergers and Acquisitions (M&A)
opportunities in various businesses it
operates. A noteworthy outcome in this
direction has been the acquisition of
assets of the Dabhol Power project by
a new Joint Venture Company, namely,
Ratnagiri Gas and Power Private
Limited (RGPPL), where your Company
has 28.5% participating interest. The
Company has paid Rs.500 Crores as
advance pending allotment of equity
shares.
The Dabhol project is an integrated
facility, i.e., gas based power plant of
2,184 MW and a linked LNG import and
re-gasification facility. Commissioning
of this project will offer an opportunity
to your Company to import 2.9 MMTPA
of LNG for merchant sales. The project
provides a unique growth prospect for
your Company to enable it to expand
its gas pipeline infrastructure and to
deliver the growing demand of gas in
the Indian market.
In addition to above, your Company
is also in process of formation of JVCs
to implement City Gas Projects and
has already executed Joint Venture
Agreement with HPCL for state of
Madhya Pradesh. GAIL has also signed
MOU with HPCL for formation of joint
ventures for Rajasthan and Gujarat and
with BPCL for Kerala and Karnataka.
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Expansions through Joint Ventures
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GLOBALIZATION
As part of its globalization initiative, your Company
has acquired equity in China Gas Holding Limited,
a Company which is emerging as one of the
significant retail gas players in China. China Gas,
which already has a substantial customer base,
holds concessions for 47 city/towns, of which 24
are already operational. As part of the broader
understanding with China Gas, a Joint Venture
Agreement is under discussion for introduction
of CNG in some of the cities of China in which
China Gas has concessions. With the policy
support for CNG in transport sector by the Chinese
Government, CNG business could offer business
opportunities to your Company.
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In view of the growing role of China
and India in the global hydrocarbon
scenario, your Company has entered into
Memorandum of Understanding with
oil and gas majors of China i.e. Sinopec,
CNOOC and Beijing Gas Company to
pursue business in the areas of E&P, LNG,
Petrochemicals and retail gas marketing.
TOWARDS CUSTOMER DELIGHT
TQM INITIATIVES
A dedicated TQM Group is working to
assure Company wide implementation of
Quality Policy and initiatives.
QUALITY CIRCLE
This concept has taken root in all our
workplaces. These small groups take
up a handful of issues at a time and
analyze them using the QC concepts and
techniques and come up with creative
solutions. Advent of QC’s has resulted in
continuous improvement in all processes
for better results and has ensured total
employee involvement.
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FY2004 FY2005 FY2006
JVs at the beginning of the year
JVs added during the year
20 Winning Momentum 21