GAIL CMD Manoj Jain speaks to Anil Singhvi, says plan to earn revenue of Rs 100 crore in one year from Kochi-Mangaluru gas pipeline project

GAIL CMD Manoj Jain talked to Zee Business Managing Editor Anil Singhvi today and revealed that Indian public sector natural gas processing and distribution company is planning to earn a profit of Rs 100 crore in one year from the new pipeline. GAIL CMD was talking about the new Kochi-Mangaluru natural gas pipeline project that was inaugurated by Prime Minister Narendra Modi on January 5. He was speaking with Anil Singhvi in the Zee Business ‘NewsParViews’ programme. 

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एक साल में गेल को नई पाइपलाइन से करीब 100 करोड़ आय की उम्मीद... #NewsParViews में कंपनी के CMD मनोज जैन ने कहा- अगले साल विस्तार पर दोगुने निवेश का प्लान

#GAIL @AnilSinghvi_ @gailindia pic.twitter.com/fCw1fbwsGR

— Zee Business (@ZeeBusiness) January 7, 2021

“GAIL has invested Rs 3,000 crore in the Kochi-Mangaluru natural gas pipeline project. We are expecting a revenue of around Rs 100 crore from this pipeline in one year. The same will be ramped up further and an extra revenue of Rs 100-150 crore will be generated from this pipeline in the next financial year.  Once its capacity utilisation increases in one to two years, then definitely revenue could increase in the range of Rs 300 crore in one year,” said Manoj Jain.

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Talking about prices of gas and its outlook this year, Jain said it will depend on the prices of crude. This year it is expected that crude will remain in range.  “Considering everything, gas prices are likely to remain in the current price range in the long-term,” he said.  

Responding to likely buyback offer from GAIL, Jain said it will be difficult to say anything on this.

“We are planning to increase company’s capex significantly. We will complete our last capex of around Rs 5,400 crore and we are expecting to double the target of this year going forward in next year.  As far as our cash position is concerned, we are sitting at a very comfortable debt-equity ratio, around 0.15. Given our stong debt-equity ratio, we have good capacity to take more debt. So there won’t be any restriction in capex too,” he added.