Cairn India Mulls Gas Distribution in Rajasthan

With expectation of huge gas potential in its block in Rajasthan, Cairn India is keen to start city gas distribution in Rajasthan.

"Cairn has written to us and we are evaluating its proposal to partner with Rajasthan State Petroleum Corporation (RSPCL) and Gail and could take a final decision by this month-end. The company could be a good fit as the original contours of the JV between RSPC and Gail did envision a 50% contribution from private investors," Sudhansh Pant, secretary, petroleum and mines, Rajasthan, told Economic Times. 

Last November, RSPCL and Gail agreed to form a joint venture, Rajasthan State Gail Gas Company, where RSPCL is the nodal agency and facilitates Gail in acquiring land for city gas infrastructure. In the joint venture, Gail has a 26% stake while RSPCL has a 24%. 

Pant said that Gail's existing pipeline infrastructure is likely to be used to transport and market the gas. “And once production picks up we could also look at tapping customers across the country and think of new pipeline projects," Pant told Economic Times. "The new company will also bring pipelines from the existing trunk line of Hazira-Vijaipur-Jagdishpur in the state and we will also bid for CNG stations in the PNGRB auctions," he added.