GAIL to invest Rs 5,000 crore in new age energy business. India News – Times of India

New Delhi: Back from the brink of split, state-run GAIL has prepared a Rs 5,000-crore war chest to further integrate its fortunes with the government’s carbon-reduction goals and remain relevant in the rapidly changing times. Looking beyond natural gas. Energy market scenario.
The blueprint for this change was prepared under the leadership of Chairman Manoj Jain, revolves around finding synergies between a gas utility’s pipeline and transportation business and a range of new-age energy solutions.
The company has placed a stake of Rs 1,000 crore on setting up two plants each to produce ethanol and compressed biogas (CBG) from municipal waste. The entry into ethanol has been made with the government pushing the target of 20% petrol blending by 2025. CBG plants will add volume to its pipeline network as city gas service expands across the country.
The company will invest Rs 4,000 crore to increase its renewable energy capacity from 120MW to 1GW in the next three-four years. To begin with, the company will bid for the 400MW solar power project being auctioned dry In Rewa, Madhya Pradesh. The company has an open-ended tie-up with the power gear maker BHEL for renewable energy.
“Building pipeline networks to improve access to gas and transportation will continue to be our core business. We are looking for synergies with new businesses, which are emerging as a result of the energy transition, to create new revenue streams for us,” Jain told TOI.
The government had recently dropped the proposal to split GAIL into two separate pipeline and gas marketing companies. The first CBG plant will be built in Ranchi at a cost of Rs 200-300 crore. It will produce about 25 tonnes of compost using five tonnes of gas and municipal waste per day. “The gas will be fed into the city gas network supplying CNG to automobiles and png to homes. This will help in reducing pollution,” said Jain, adding that the company is looking for a partner.
Jain said these projects will not affect GAIL’s Rs 45,000-crore pipeline network expansion plan to meet the government’s target of increasing the share of gas in India’s energy basket to 15%. “The expansion will continue as planned. We need to connect consumers to emerging sources of gas (such as CBG) and provide access to clean fuel across the country,” Jain said.


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