GAIL (India) Ltd was incorporated in August 1984 as a Central Public Sector Undertaking (PSU) under the Ministry of Petroleum & Natural Gas (MoP&NG). The company was initially given the responsibility of construction, operation & maintenance of the Hazira – Vijaypur -Jagdishpur (HVJ) pipeline Project. It was one of the largest cross-country natural gas pipeline projects in the world. Originally this 1800 Km long pipeline was built at a cost of Rs 1700 Crores and it laid the foundation for development of market for natural Gas in India.
The HVJ pipeline contract valued at Rs 722.49 crore was signed on May 10, 1986 with the consortium led by M/s Spie Capag of France and M/s NKK and Tokyo Engineering of Japan as other members to construct the HVJ Pipeline on composite basis including design, supply, handling, transportations, erection and commissioning etc. of compressor stations, terminals, cathodic protection systems and tele-communication and tele-supervisory systems.
The pipe laying work for the Hazira – Vijaipur section was completed by middle of June, 1987 and energized by end of July 1987. The pipeline was commissioned within nine months of mobilization and 15 months from the signing of the contract.
In November 1988, GAIL received approval for investment of Rs. 300 crore for setting up a LPG extraction plant at Vijaipur. The unit, based on HVJ gas was to have a capacity of over 400,000 TPA to be implemented in two phases of 200,000 TPA capacity each.
GAIL (India) Limited is the main promoter of BCPL, having 70% equity participation and the rest 30% is equally shared by Oil India Limited (OIL), Numaligarh Refinery Limited (NRL) and Government of Assam.
Set up with an investment of approx. Rs. 10,000 crores, the BCPL plant will have the capacity to manufacture 2,80,000 tonnes per annum of polymer products which will result in the growth of new downstream plastic processing industries in the North Eastern region, besides reducing dependency on polymer supply from other parts of the country.
By 1990-91 commissioning of the Phase I of the LPG plant at Vijaipur was completed, eight months ahead of schedule. Following this, Phase-II at Vijaipur was completed in November/December 1991 and commissioned in February 1992.
A Joint Venture Agreement with British Gas was signed on December 6, 1994 for the Bombay City Gas Distribution Project. A company in the name and style of Mahanagar Gas Limited was incorporated and the company obtained a Certificate to commence business to implement Bombay City Gas Distribution project.