Gujarat State Petronet (GSPL) led consortium has received a letter of authorization from Petroleum and Natural Gas Regulatory Board (PNGRB) to begin laying three gas distribution pipelines in India.
The pipelines, estimated to be built at a cost of INR125bn ($2.76bn), will have capacity to carry around 95 million metric cubic meters per day of gas.
The company will build a 1,611 km pipeline from Mallavaram-Bhilvara, a 1,688 km second pipeline from Mehasana-Bhatinda and the 512 km third pipeline from Bhatinda-Jammu.
The GSPL-led consortium was announced as the lowest bidder by PNGRB in October 2010.
GSPL managing director Tapan Ray said the gas pipelines will facilitate the development of networks eventually leading to the establishment of the national gas grid.
The state-run GSPL has 52% equity in the consortium which also includes IOC with 26% BPCL with11% and HPCL with 11%.
GSPL currently operates over 1900-km pipeline network in the state of Gujarat, reports Business Standard.