GAIL (India) Ltd on Monday, August 5 said it has entered a joint venture agreement with Coal India to set up a coal to syntethic natural gas project at Eastern Coal Field in West Bengal.

Coal India will have 51% shareholding in the JV and GAIL will have 49%.

GAIL in a stock exchange filing said the joint venture firm will be incorprated as a private limited company. The initial paid-up share capital is of ₹1 lakh. The authorised share capital of the joint venture company will be ₹11 crore, comprising 1.1 crore equity shares at ₹10 each.

The registered office of the joint venture company will be located in West Bengal.

Last week, GAIL reported a 92.9% jump in its first quarter standalone net profit at ₹2,724 crore.

In the corresponding quarter, GAIL (India) posted a net profit of ₹1,412 crore, the company said in a regulatory filing. The CNBC-TV18 poll had predicted a profit of ₹2,334 crore for the quarter under review.

The company’s revenue from operations increased 4.55% to ₹33,692 crore as against ₹32,227 crore in the corresponding period of the preceding fiscal. The CNBC-TV18 poll had predicted revenue of ₹33,464 crore for the quarter under review.

GAIL shares were trading 4.56% lower at ₹226.2 apiece at 2.55 pm on Monday, August 5. The stock has gaibned 36.16% this year, so far.

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