GAIL to buy 29% stake in Tripura Gas Company
After months of deliberation GAIL has finally agreed to invest Rs10cr for a 29% stake in Tripura Natural Gas Company.
In May GAILs board approved the proposal and left it to its city gas distribution team to take the final call. This acquisition will give GAIL exposure to a state where gas is in abundance, a source tells PETROWATCH.
And Tripura is strategically located near Myanmar where GAIL has business interests. GAIL plans to develop its CNG business in Tripura through TNGC.
The company will also sell gas across the entire state. Tripura Industrial Development Corporation and Assam Gas Company will hold a 10% stake each in TNGC while the remaining 51% will be offered to financial institutions or banks.
TNGC is a 100% enterprise of the Tripura government and supplies piped natural gas to domestic, commercial and industrial consumers in Agartala and neighbouring areas.