International Finance Corporation (IFC) has given a corporate loan of Rs 337.5 crore to Gujarat State Petronet for the extension of pipeline network to Mundra and Pipavav from Jamnagar. IFC has also made an equity investment of around $30 million (around Rs 123 crore) for the project.
GSPL will issue 2,20,00,000 equity shares to IFC on a preferential basis, at a price of Rs 57.29 per equity share. The company has signed share subscription and shareholders agreement with IFC on August 23, subsequent to the board approval.
IFC promotes sustainable private sector development in developing countries. Its focus is to promote economic development by encouraging the growth of productive enterprise and efficient capital markets in member countries.
GSPL has so far invested Rs 2,000 crore in laying 1,100 km pipeline. It plans to construct another 800 km. The proposed project will require and investment of Rs 1,500 crore. “The project of extending the pipeline network to Pipavav and Mundra will take around two years,” GSPL’s AGM (finance) Manish Sheth told ET. The development has taken the state a step ahead in achieving its goal of being a gas-based economy by 2010.
Gujarat has created an extensive gas pipeline network across the state, which is operated by Gail, GGCL and GSPL. As a result, the state has emerged as the largest gas consuming state in the country. Approximately, 35% of the country’s total natural gas is consumed in Gujarat.
GSPL — a GSPC subsidiary — has taken a lead in developing energy transportation infrastructure in Gujarat and connecting major natural gas supply sources and demand markets. It is the first company in India to transport natural gas on open access basis. It is a pure natural gas transmission company.
Source: Economic Times