GSPL is listed on the Bombay Stock Exchange. Its largest shareholder is GSPC, which owns 39% in the company. GSPC, together with other state government entities, currently own about 50.5% of GSPL. The balance is owned by institutional and public investors.

Total estimated project cost is about $455 million. IFC is exploring a possible cooperation with the company to finance part of this expansion program.

104.67 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	74.67
Equity	30.0

* These investment figures are indicative

The proposed project includes the construction of the pipelines in the following areas:

- a 190 km loop line from Bhadbhut to Hadala and a 110 km extension from Rajkot to Jamnagar;
- a 46km extension of the transmission line from Baroda to Godhra;
- a 225 km pipeline from Dhandhuka to Jafrabad; and
- a 225 km extension of the pipeline from Morbi to Mundra.

The expansion of the GSPL network will lead to additional availability of gas to meet the growing needs of users in key sectors such as power that directly impact economic growth and quality of life for all sections of society, particularly the poor. The project will also further the GoI agenda to increase transparency and competition at a critical juncture for India’s gas sector, through providing increased opportunities for consumers to contract directly for gas with suppliers. The substitution of petroleum fuels and coal by natural gas in industry will have important environmental benefits that include large reductions of nitrous oxide, carbon monoxide, sulfur dioxide, and total organic compounds when compared on a calorific-equivalent basis for alternative fuels. The increased use of natural gas also carries with it important safety benefits since it eliminates the need for storage facilities. Expanded gas use in Gujarat will also lower energy costs for industry thereby increasing the competitiveness of Indian industry.

IFC’s support to such a project will result in moving GSPL further on the path of becoming a true public-private partnership that is professionally managed and commercially operated. IFC’s participation will also assist GSPL improve its corporate governance and environmental management practices. IFC will also provide long term financing to the company which are not readily available in the local market.

This is a category B project according to IFC’s environmental and social review procedure because a limited number of specific social and environmental impacts may result, which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The following potential environment, health and safety and social aspects of the project were analyzed:

- environment and social assessment and corporate environmental, social, and health and safety management systems;
- community consultation, disclosure and engagement;
- labor and working conditions including management of employee occupational health and safety;
- pollution prevention and abatement (including management of resources including energy, water, hazardous and other materials;
- management of emissions, discharges, hazardous and other wastes);
- biodiversity conservation;
- management of community environment, health and safety impacts during construction and operation;
- management of Right of Use (ROU) acquisition on account of the project;
- management of impacts on indigenous peoples where relevant and applicable; and
- management of impacts on cultural heritage including chance find procedures.

A summary discussion on the social and environmental aspects of relevance to the project including the company’s plans to address these impacts has been provided in the Environmental and Social Review Summary (ESRS) prepared by IFC and publicly disclosed at IFC’s website.