State-run gas utility Gas Authority India Limited (GAIL) has informed that it has signed a Co-operation agreement with Government of Himachal Pradesh to link the hill state with the national gas grid.

GAIL was setting up gas pipeline networks from Uttar Pradesh to Haryana to Punjab and finally to Himachal Pradesh. The 610-km long Dadri-Bawana-Nangal pipeline, which will pass through Uttar Pradesh, Delhi, Haryana and Punjab entails an investment worth Rs 25 billion.

Under the Co-operation Agreement, GAIL will use its technical and commercial expertise to study the various options and collate the gas demand potential of the state of Himachal Pradesh. In addition, the latest agreement also provides GAIL and the nominated state agency, to identify industrial clusters for distribution of Natural Gas as fuel and to determine modus operandi for setting up of joint ventures by GAIL in Himachal Pradesh.

According to sources, the gas pipeline will bring clean and environment friendly fuel to various consumers in the region, which include industrial, domestic and transport sectors.