New Delhi: GAIL (India) plans to invest Rs2,744 crore in capital expenditure during the financial year 2007-08. The investments would be made towards pipeline projects, oil and gas exploration and expansion of petrochemical plant.

Of the Rs 2,744-crore, the company plans to invest Rs1,855 crore in pipeline projects, Rs500 crore in E&P projects, Rs146 crore in petrochemicals, Rs94 crore in business development, and the rest in projects related to city gas, telecom, and coal gasification. GAIL is expanding the capacity of its Pata petrochemicals plant in Uttar Pradesh to 410,000 tonnes per annum (TPA) from the current 310,000 TPA. The project is expected to be completed by the first quarter of the current financial year sources said.

GAIL plans to raise Rs2,500 crore in the current financial year, of which 60 per cent would in the form of external commercial borrowings. The borrowings will be utilised to partly fund the capex in the current financial year and in 2008-09. GAIL plans a total capital expenditure of Rs25,000 crore for the next five years (by 2011-12). Of this it would raise Rs15,000 crore through borrowings and the remaining Rs10,000 crore would be through internal accruals.

Despite being hit by natural calamity and subsidy element Gail has recorded a sustained performance in all key physical and financial parameters in the financial year 2006-07.

According to the audited figures, turnover for the year went up by 11 per cent to Rs16,047 crore from Rs14,459 crore in 2005-06. The profit after tax for the year under review was Rs2,387 crore against Rs2,310 crore in the previous year.