GAIL (India) Limited (GAIL) has accorded an investment approval of over INR75 billion for laying Dabhol - Bengaluru and Kochi - Kanjirkkod - Bengaluru - Mangalore pipelines. The board approved an investment of INR45.43 billion including foreign exchange component of INR1.93 billion for 1,389 kilometers Dabhol - Bengaluru pipeline project. The design capacity of the 30 inch diameter Dabhol - Bengaluru section is 16 MMSCMD and the project will be implemented in two phases.

U.D. Choubey, chairman and managing director, GAIL called on Shri Sudhakar Rao, chief secretary, government of Karnataka in Bengaluru. During the meeting, the chief secretary assured of full support from the state government for implementation of these pipeline projects.

In part A of the first phase, 402 kilometers pipeline will be laid from Dabhol to Gokak along with spurlines to Belgaum and Goa at an estimated investment of INR15.93 billion and is scheduled to be completed by 2011-12. In part B of the Phase I, 570 kilometers pipeline will be laid from Gokak to Bengaluru (KPCL, Bidadi) along with spur lines/feeder lines to Bengaluru at an estimated investment of INR24.6 billion and is scheduled to be completed by 2011-12/2012-13.

In Phase II of the project, 417 kilometers spur lines / feeder lines will be laid to Ratnagiri, Kolhapur, Sangali, Bijapur, Dharwad, Devangere, Harihar and Tumkur at an estimated investment of INR4.8 billion and is scheduled to be completed by 2012-13/2013-14.

For the second project, 1,114 kilometers Kochi – Kanjirkkod – Bengaluru – Mangalore pipeline, an investment of INR30.2 billion including foreign exchange component of INR185.7 million has been approved for. The design capacity of this pipeline is 16 MMSCMD including four MMSCMD as common carrier and the project will be implemented in two phases.

In Phase I of the project, 96 kilometers pipeline will be laid from from Kochi to Alwaye (Tap-off) with spur lines / feeder lines to Alwaye (SEZ Vyapin Kochi, GTN Textiles), Udyogmandal (Premier Tyre Kalamassery, REL, FACT-I, Sudchemic & Travancore Cochin), Binannipuram (Cochin Minerals & Binani Zinc), Ambalamedu (Kerala Chemicals & Protein Ltd. Kakkanad, FACT-II, BPCL Refinery, Hindustan Organic Ltd., Philips Carbon & MILMA) at an estimated investment of INR2.6 billion. The Phase I is scheduled to be completed by 2011-12.

In Phase II of the project, 1018 kilometers pipeline will be laid from Alwaye (Tap-off) to Kanjirrkkod, Kanjirrkkod to Mangalore and Kanjirrkkod to Palghat / Palakkad with spurlines / feeder lines to Thrissur (Apollo Tyres), Kottakal (Aryavaidsala), Kozhikode (KESEB Power Plant), Kannur (Western Plywood, Power Projects), Mangalore (MCF) and Palakkad (Indosil, Precoat & steel industries). The Phase II of the project will involve laying of pipeline from Palakkad to Bengaluru with spurlines / feeder lines to Coimbatore (Sri Kannapan, Flow Link, CPC, Koval Auto, KG Denim, Van Tax, Texmo Precision, Texmo Industries, Supper Spinning, LG Balkrishan & Bros Ltd), Trippur (Local area network for SA Textiles Ltd. & Gomukhi Spinning), Truchengode (Agni Steels Ltd at Erode, Pavai Alloys, Ram India Steels & Janson Industries) and Salem (Micro Tech at Hosur and NGA Steels P Ltd & Sri Krishna Alloys). The Phase II of the project will involve an estimated investment of INR27.6 billion is scheduled to be completed by 2012-13.

GAIL had received the authorization for laying Dabhol – Bengaluru and Kochi – Kanjirkkod – Bengaluru – Mangalore pipelines from MoP&NG in July, 2007.