Friday, September 05, 2008

GAIL shareholders approve 1 bonus share issue for 2 equity shares

GAIL shareholders approve 1 bonus share issue for 2 equity shares

Authorized capital to be doubled to Rs. 2000 crore

GAIL to enhance petrochemical capacity at its Pata plant

Company on path to achieve Rs. 50,000 crore revenue by 2011-12

Enhancing the transmission / distribution capability, Petrochemicals and City Gas / CNG activities to be focus areas for future growth

GAIL Training Institute to become Profit Centre

New Delhi, September 4, 2008. The shareholders of GAIL (India) Limited approved the issuance of 1 bonus share for every 2 equity shares held in the 24th Annual General Meeting of the Company held today in New Delhi.

The paid-up capital of the company is Rs. 845.65 crore and the Reserves and Surplus as on 31st March 2008 were approximately Rs. 12,160 crore. The Board of the Company had earlier, in June this year, recommended the issuance of bonus shares.

The shareholders also approved the payment of 100 percent dividend for the year 2007-08.

Addressing the shareholders, Dr. U. D. Choubey, Chairman and Managing Director, GAIL said that the Authorized Share Capital of the Company is proposed to be increased from Rs.1,000 crore to Rs.2,000 crore.

Dr. Choubey said that GAIL has completed the expansion of Pata plant by commissioning a new HDPE plant with additional capacity of 100,000 TPA. It is proposed to further augment the capacity to 5,00,000 TPA gradually going upto 8,00,000 TPA.. Increased production of polymers at Pata shall further add values for stakeholders, he said.

“GAIL is making special effort to nurture and develop talent pool in the gas sector through its state-of-the-art Training Institute with centres at Noida and Jaipur. GAIL intends to convert GAIL Training Institute into a profit centre as SBU”, said Dr. Choubey.

He further said that cooperation, collaboration and competition have become the mantra for success in the hydrocarbon sector. “In the year that follows, we hope to unfold a number of projects in our core business areas to further strengthen the market position of your Company. Three focus areas decided by the Board and Top Management Team (TMT) have been identified as (i) enhancing the transmission / distribution capability, (ii) Petrochemicals and (iii) City Gas / CNG activities”, he added.

He reiterated Company’s commitment to increase revenues to Rs. 50,000 crore by 2011-12 and added that “with the existing projects and new business initiatives being taken, I can confidently state that your Company is moving steadily on its way to achieve this goal”.

Five new trunk pipelines and two capacity augmentation projects of GAIL are moving forward rapidly for timely completion. This will enable the Company to continue and consolidate its dominant position in the gas transmission and marketing segment raising the Company’s pipeline handling capacity to over 300 MMSCMD by 2011-12 at an estimated investment of Rs 20,000 crore.

Dr. Choubey also said that GAIL is advocating two key initiatives towards achieving energy security through natural gas. First is creation of CNG Corridors along national highways, in proximity to trunk gas pipelines across the country to supply / dispense PNG and CNG to domestic and commercial vehicles. It can enable large scale conversion of vehicles to CNG resulting in substantial savings in the petroleum import bill and save precious foreign exchange, besides providing a cleaner environment. Second is to enhance regional cooperation to foster energy trade, investment, technology transfer and skill development etc in participating nations.

GAIL (India) Limited recorded sustained performance in all key physical as well as financial parameters in the Financial Year 2007-08. According to the audited figures, the company recorded a Turnover (excluding internal consumption and net of excise duty) of Rs. 18,008 crore in the year 2007-08. The Profit After Tax during the year 2007-08 was Rs. 2,601 crore. The Board of Directors has recommended payment of total dividend at the rate of 100 percent on the paid-up share capital of the Company for FY 2007-08.

GAIL is one of the leading public enterprises with a consistently excellent financial track record. Turnover during the last ten years has shown a compounded annual growth rate of 13 percent.

Courtesy: GAIL (India) Limited

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