GAIL shares rise up to 2% on signing deal to optimise gas-based power plants in Rajasthan

In a filing to the stock exchanges on Thursday, the state-owned company said that it has joined hands with Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL) to promote clean energy in the state.

GAIL has signed a non-binding Memorandum of Understanding (MoU) with RRVUNL to optimise the operations of gas-based power plants in Rajasthan, the company informed the stock exchanges.

The MoU was signed in the presence of Hiralal Nagar, Energy Minister, Rajasthan, and Shri Alok, Additional Chief Secretary (Energy), Government of Rajasthan. Sandeep Kumar Gupta, Chairman and Managing Director, GAIL, and Rajeev Kumar Singhal, Director (Business Development), GAIL, were also present at the MoU signing event.

The company said that the MoU was signed by Devendra Shringi, Chairman and Managing Director of RRVUNL and Sumit Kishore, Executive Director (Business Development and Exploration and Production), GAIL.

To optimise the operations of gas-based power plants in Rajasthan, RRVUNL and GAIL will investigate the potential of transferring RRVUNL's gas-based power plants in Dholpur and Ramgarh to a proposed Joint Venture Company (JVC) between the two organisations.

Both parties will collaborate to build around 1,000 MW of solar and wind projects on suitable land parcels, enabling round-the-clock (RTC) power.

The company's 1,090 km natural gas pipeline network serves industrial customers in the Bhiwadi, Neemrana, Khuskhera, Kota, Jaisalmer, and Chittorgarh regions of Rajasthan, including Chambal Fertilizers and Shriram Fertilizers.

GAIL also provides gas to 19 authorised city gas distribution entities in Kota, Bhilwara, Bhiwadi, Chittorgarh, Jodhpur and other districts of Rajasthan to the residential, commercial, minor industrial and transportation sectors for promoting green and clean energy.

The company owns and operates the 1,427-kilometre-long Jamnagar-Loni LPG pipeline. The majority of the LPG pipeline (694 km) is operational in Rajasthan, stretching from Abu Road to Alwar.

GAIL supports the Jal Jeevan Mission (JJM) initiative in Rajasthan by providing polymers for HDPE pipe production, ensuring every rural household now has access to tap water.

Earlier this week, the company announced its Q1 results. The PSU’s net profit jumped nearly 29% to ₹3,183 crore while its consolidated revenue for the quarter grew by 6% YoY to ₹34,822 crore.

The company’s operating earnings before interest, tax, depreciation, and amortisation (EBITDA) during Q1FY25 grew 80% YoY to ₹4,790 crore.

GAIL India shares are trading 0.14% higher at ₹227.6 apiece on the NSE at 12:45 pm.