New Delhi: India's gas transmission company Gujarat State Petronet Ltd (GSPL) and three state-run oil majors -- Indian Oil Corp Ltd (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) -- have executed joint venture (JV) agreements for developing three cross-country natural gas transmission pipelines, a regulatory statement said.
With the signing of the JV agreements, the equity tie-ups for three pipelines -- Mallavaram-Bhilwara [1,585 kilometers (kms)], Mehsana-Bhatinda (1,670 kms) and Bhatinda-Jammu-Srinagar (740 kms) -- have been completed, GSPL said in a filing to the stock exchanges Monday.
According to the Business Line, the development of the transmission pipelines, with total distance of 3,995 kms, is expected to cost about Rs 125 billion.
The pipelines would criss-cross seven states, namely Andhra Pradesh, Madhya Pradesh, Maharashtra, Haryana, Punjab, Rajasthan and Jammu & Kashmir.
GSPL holds 52% stake in the projects, IOC 26%, while BPCL and HPCL own 11% each.
Earlier, in July 2011, the Petroleum and Natural Gas Regulatory Board (PNGRB) awarded the Letters of Authorization (LoA) to the GSPL-led consortium for developing three cross-country natural gas transmission pipelines.
The project to construct the pipelines will have to be completed within 36 months from the date of award of the LoA to the consortium, GSPL had said last year.