GAIL India gains on Rs 30,000-crore capex plan

GAIL India Limited shares were trading nearly a percent higher on August 24 morning, a day after chairman Sandeep Kumar Gupta said the company was targeting a capital expenditure of around Rs 30,000 crore over the next three years.

The capex would be mainly used for pipelines, ongoing petrochemical projects, city gas distribution projects, and equity contribution in group companies, Gupta said at the company’s annual general meeting (AGM) on August 23.

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Gupta added that in FY24, GAIL would achieve over 120 MMSCMD (million metric standard cubic meter per day) of natural gas transmission, over 100 MMSCMD of natural gas sales and around 800 thousand metric tonnes (TMT) of polymer sales.

The country’s largest natural gas distributor has also issued an expression of interest (EoI) to explore the opportunity of equity acquisition where it could convert natural gas into a liquid form in the US.

GAIL is also in the process of establishing a 10 MW green hydrogen production facility using polymer electrolyte membrane water electrolyser, the largest in India to align with the government’s National Hydrogen Energy Mission. It is expected to be commissioned by December 2023.

Gupta said that due to rising demand for petrochemicals in India, the country was expected to account for over 10 percent of the additional global growth in the petrochemicals sector in the coming decade.

At 9.50 am, the stock was trading flat at Rs 117.80 on the National Stock Exchange.

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