Gujarat State Petronet concluded equity tie up for its pipeline projects

Business Line reported that Gujarat State Petronet Ltd (GSPL) and three PSU oil majors - IOC, BPCL and HPCL - have have signed joint venture agreements for developing three cross-country natural gas transmission pipeline project which expected to cost about Rs 12,500 crore.

With the execution of joint venture agreements, the equity tie-ups for the three projects have been completed.

The JV arrangemnet for the following projects.

Mallavaram-Bhilwara (1,585 km), Mehsana-Bhatinda (1,670 km) and Bhatinda-Jammu-Srinagar (740 km) pipeline. The total distance of the three pipelines was 3,995 km.

GSPL-led (with 52 per cent stake) consortium with IOCL (26 per cent), BPCL (11 per cent) & HPCL (11 per cent) had emerged as the most favourable bidder for all the three pipeline projects.

The three projects shall be required to be completed within a period of 36 months from the date of award of the LoA to the consortium. Last July the company has received a LoA from the ministry.