GAIL and VMC carve up JV responsibilities

Vol 16, PW 2 (09 Aug 12) News in Brief
     

GAIL and the Vadodara Municipal Council have reached agreement on who will assume the critical roles of MD, chairman and director commercial in their new gas distribution joint venture, the Vadodara Gas Company.

At a meeting last week PETROWATCH learns VMC agreed to let GAIL assume control of the MD role in exchange for a hike in its equity stake in the JV from 24% to 26%, something GAIL accepted reluctantly. GAIL also wanted the role of director commercial but VMC objected, forcing GAIL to relent - the director commercial position will be held by a VMC nominee.

Both sides agreed to alternate the chairman’s position every two years, with GAIL taking first shot. Overall the VGC board will have three members from each company.

VMC supplies gas through 78,771 piped connections of which 75,879 are to homes and 2892 to businesses. VMC has a firm allocation of 100,000cm/d subsidised GAIL gas at $3.82/mmbtu for supply to Vadodara city.