New Delhi: GAIL CMD (Chairman & Managing Director) Manoj Jain said on Wednesday that the company has planned a capex of Rs 6,100 crore in the current FY 2020-21. The funds will be spent mainly on pipeline projects, Jain said while presenting the financial results for FY2019-20. Commenting on the impact of the nationwide lockdown imposed to contain the spread of Coronavirus pandemic, the GAIL CMD stated that although there were some reductions in GAIL's business activities in the initial stage, with graded relaxation in lockdown and other measures announced by the government towards resuming economic activities, the operations of GAIL has been normalised to a great extent.
GAIL's petrochemical plant, which was shutdown in April, is now operating at 100 percent capacity, said the CMD. "The LHC production and transmission segments did not see much impact and are currently operating at 100 percent of FY20 levels," he added.
During the financial year, GAIL has entered a composite tripartite framework agreement with KLL (Konkan LNG Limited) and its lenders for settlement of KLL's loan as per debt resolution plan, the GAIL CMD said. "As per the plan, GAIL has provided inter-corporate loan of Rs 2,700 crore to KLL, for settlement of loan with lenders. Consequent upon the debt resolution plan, the company's equity shareholding in KLL has increased from 40.92 percent to 69.06 percent and, it has become a subsidiary of GAIL, with effect from March 27," Jain stated. There has been a significant improvement in the performance of KLL during the year 2019-20 vis-a-vis 2018-19. Based on the impairment study, GAIL has reversed the impairment of Rs 137.57 crore on its investment in KLL.
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