The foundation stone for GAIL India''s Kailaras-Malanpur pipeline project was laid by Jyotirditya Scindia, MP, at Bhind district in Madhya Pradesh.

The 87km-long pipeline will be completed by end July 2006 at an investment of Rs920 million. The pipeline has a carrying capacity of 2mmscmd. The pipeline will enhance the availability of natural gas for the gas-based industrial units such as Godrej Consumers, Hotline, Surya Roshni, Cadburys, among other industrial users.

The gas supplied through this pipeline will also support the city gas distribution projects in Gwalior. The Kailaras-Malanpur pipeline is linked to the Hazira-Vijaipur-Jagdishpur (HVJ) and the Dahej-Vijaipur pipeline (DVPL) systems.

The gas PSU has invested Rs4,612 crore in Madhya Pradesh for a gas pipeline network of over 1,150km and associated compressor stations at Jhabua, Khera and Vijaipur. GAIL is now laying a 135km-long pipeline from Jagoti to Pithampur via Indore at an investment of Rs195 crore to transport gas to Dewas, Ujjain, Indore, and Pithampur.

Its largest LPG recovery plant is located at Vijaipur in the state, which has an installed capacity of 412,000mtpa of liquefied petroleum gas, 130,000mtpa of propane, 40,000mtpa of pentane and 27,000mtpa of special boiling point solvent. The LPG production from this plant translates into 27 million domestic LPG cylinders annually.

In addition to its gas business, GAIL has a 22-per cent share of the petrochemical market in the state.