The firms also agreed on a strategic cooperation on new opportunities for conventional and unconventional fuel trading and marketing, including jointly setting up petrol pumps.
On the CGD project, he said it would be implemented by GAIL Gas Limited, a wholly owned subsidiary of GAIL (India) Limited at an investment of Rs 6,283 crore.
The project would cover 4,395 sq km in urban and rural Bengaluru, broadly covering eight sectors – Nelamangala, Dod Ballapur, Devanahalli, Hosakote, Bengaluru East, Bengaluru North, Bengaluru South and Anekal, he said.
The project will provide economical,environment friedly, uninterrupted, safe and convenient energy to 106.12 lakh residents of Bengaluru by supplying Piped Natural Gas (PNG) for households, industries and commercial units, Pradhan said.
Moreover,with the setting up of 60 Compressed Natural Gas stations, the project would provide cheaper fuel for the transport sector and also facilitate a healthy lifestyle by creating a pollution-free environment, Pradhan said.