State-run Gail (India) GAIL has announced a 9% jump in its net profit at Rs 2,601 crore and a turnover of Rs 18,008 for the year 2007-08. Profit before tax in FY08 increased 35% to Rs 3,855 crore from Rs 2,860 crore in 2006-07.
GAIL will invest Rs 3,413 crore in the current financial year for expansion in pipeline, petrochemicals and other business development projects. Of this amount Rs 2,565 crore will be invested in pipeline projects, Rs 500 crore in E&P projects, Rs 187 crore in petrochemicals, Rs 115 crore in business development and the balance in City Gas and telecom business. Gail is also setting up a petrochemical complex in Assam through joint venture route along with Numaligarh Refineries Ltd, Oil India Ltd. and the Assam government at a project cost of Rs 5,460 crore. The complex would have a capacity of 2,20,000 tpa ethylene and 60,000 tpa propylene. In 2007-08, Gail India signed a memorandum of understanding (MoU) with Reliance Industries Ltd (RIL) for joint cooperation in petrochemicals. Under the MoU, Gail and RIL are exploring opportunities for setting up petrochemical complexes outside India. Gail also signed MoU with HPCL, Mittal Group, OIL and Total for exploring opportunities for setting up a petrochemical plant in southern India. While the feasibility study for setting up a large integrated refinery cum petrochem project at Vizag, Andhra Pradesh is under way, GAIL has also identified three locations overseas for setting up a similar multi-billion dollar petrochem project with an Indian partner.