THE Jammu and Kashmir Government is to sign an agreement with public sector GAIL India to set-up city gas distribution networks in eight districts. GAIL submitted a revised MoU to the state in March this year in connection with the project. The proposal has been now been studied by the state’s law department, and certain modifications to the final draft have been proposed.
In March 2004, a gas-cooperation MoU was signed between GAIL and J&K Sidco for conducting a survey for laying a gas pipeline network in the state, and connect it with the company's existing pipeline network in Punjab. The company has subsequently conducted techno-economic feasibility studies based on current gas demand, potential demand, and geographical distribution of gas and associated facilities in the state. Sidco will act as the 'nodal agency' for facilitating and coordinating the activities of GAIL in the state during the course of implementation of the project. The MoU envisages setting up a nine-member coordination group that will meet once a month to synchronize activities and set a timeframe for implementation of project.