Rajasthan State Gas (RSGL) has signed heads of agreement (HoA) with GAIL (India) to procure natural gas. RSGL is a joint venture company of GAIL Gas, a subsidiary of GAIL, and Rajasthan State Petroleum Corporation.

The HoA will facilitate RSGL's strategy to execute Phase-1 of its project comprising of construction of mega CNG station at Neemrana and daughter booster station at Kukas near Jaipur. The Government of Rajasthan had recently declared RSGL as a nodal agency for setting up retail infrastructure for gas distribution in the state after entering into an MoU with Rajasthan State Industrial Development and Investment Corporation (RIICO) for strategic tie up in promoting clean energy.

The CGD rights for the city of Kota, presently authorized to GAIL Gas Limited, are in advance stage of being transferred to RSGL which will open many business streams to RSGL including setting up CNG highway from Kota to Jaipur. In a recently held Board Meeting, RSGL had accorded approval for enhancing authorized capital from Rs 400 million to Rs 2 billion.

RSGL is also planning natural gas connectivity to Jhalawar, Baran and Ghillot to fuel industrialization in the areas.