By IANS
Mumbai : State-run energy major Gujarat State Petronet Limited will receive financial support from the International Finance Corporation (IFC), the World Bank’s private sector lending arm, for expanding its natural gas transmission network in Gujarat.
This project will help Gujarat significantly reduce harmful environmental emissions, while making energy cheaper for private and commercial users by displacing more expensive imported fuels.
IFC’s financing to Gujarat State Petronet includes a loan of Rs.3.37 billion and equity of up to $30 million.
The company, India’s second-largest natural gas transmission firm, is the only one that transports gas on behalf of third-party shippers. Its gas transmission network spans 1,080 kilometres and discussions are underway to expand it by 800 km over the next three years.
“We welcome IFC’s support, which will help make us a strong player in gas transmission in western India,” D. Rajagopalan, chairman of Gujarat State Petronet, said Monday.
“Our company will continue its vision to provide cleaner and more efficient fuel to the power, fertilizer and other industrial sectors, as well as to transport and domestic users in Gujarat,” he added.
IFC Director for Infrastructure Rashad Kaldany said: “We are pleased to partner with Gujarat State Petronet, a leading player in the Indian natural gas market, whose vision is to meet a rapid growth in demand.”
Commented Paolo M. Martelli, IFC regional director for South Asia: “This investment is an important part of IFC’s strategy to address India’s need for more environmentally clean sources of energy. Such investments lead to greater efficiency in the delivery of gas.”