State-owned gas infrastructure major GAIL (India) has decided to take a 10 percent equity in the proposed 1,000 MW Doraha gas-based power plant of the Punjab State Electricity Board (PSEB).

GAIL and PSEB have recently signed the Heads of Agreement (HOA) for the supply of 4.5 million standard cubic metres of gas per day in the proposed mega power project to be set up at Doraha, near Ludhiana in Punjab.

Estimated to cost Rs.35 billion, the project is due to be commissioned by 2008-09, GAIL said in a statement Monday.

"The ministry of petroleum and natural gas has cleared the proposal received from the Punjab chief minister for this purpose, conveying GAIL's participation of up to 10 percent in the proposed joint venture project with PSEB," the statement said.

This will be the second power project in which GAIL will take equity participation. GAIL has already taken a 12-percent equity in the 156 MW power plant at Hazira of Gujarat State Energy Generation Limited.

In order to meet the demands of the proposed power plant in Doraha and other allied industrial, agricultural, transport and domestic sectors along the line, GAIL will be extending its Dadri-Panipat gas pipeline to Ludhiana.


(IANS)