New Delhi, June 23: Gail (India) Ltd has reported a 5 per cent rise in net profit at Rs 1,954 crore in 2004-05 compared with Rs 1,869 crore in the previous year.

In addition, the gas marketing major has made a net profit of Rs 70 crore through group companies ? Mahanagar Gas, Indraprastha Gas and Petronet LNG.

Gail chairman Proshanto Banerjee said the company had to shell out Rs 1,130 crore as its share of the subsidy burden on LPG and kerosene sold by Indian Oil, Bharat Petroleum and Hindustan Petroleum. Otherwise, the net profit would have jumped 27 per cent to Rs 2,727 crore, he added.

The rally in global crude prices has impacted Gail, as its share of the subsidy burden shot up 166 per cent in 2004-05 against Rs 428 crore in the previous fiscal. Sales turnover increased 15 per cent to Rs 12,412 crore from Rs 10,827 crore in the previous fiscal.

Gail has drawn up long-term plans to lay five inter-state pipelines. These include Dahej-Uran, Jagdishpur-Haldia, Dadri-Nangal, Kochi-Coimbatore-Bangalore and Kakinada-Uran. The total investment for these pipelines would be around Rs 15,000 crore. Banerjee added that the investment would be phased out and all projects would not be taken up at once.

Gail would also step up its presence in the upstream oil exploration and production business. It is planning to become an operator in the exploration business like ONGC and OIL. The company is expecting two to four exploration blocks in the fifth round of the new exploration licensing policy.

The gas major is eyeing a stake in the Yadavaran fields in Iran as part of the country’s LNG swap deal.

At present, Gail is like a sleeping partner in joint ventures with other oil exploration companies. Banerjee said Gail’s Cambay oilfield would start commercial production in three months. Gujarat State Petroleum Corporation is the operator of this small field that was discovered recently.

Gail would expand its petrochemicals business. The capacity of its petrochemicals plant at Pata in Uttar Pradesh will be expanded from 440 KTPA to 640 KTPA and new gas cracker projects are on the anvil for Assam and Kochi. The company is also venturing overseas. It is negotiating for setting up a one-million tonne gas cracker unit in Iran.