The Kochi-Mangaluru pipeline is a milestone in national connectivity and will be beneficial for FACT, said Kishor Rungta, Chairman & MD of the company.

“We are having one year long contract with all the oil companies. So immediately the benefit will not come to us, but when they are going connect from Mangalore to Bangalore, that time this pipeline will be connected with the national grid and this is certainly going to be a very good benefit to FACT,” he said in an interview to CNBC-TV18.

“In next one year, once it is connected with the national grid, at that time we will be free to take gas from any source, maybe from private players also. Apart from that, there is gas transmission cost which presently they are charging at around Rs 42/mmbtu; that will go down to Rs 22/mmbtu. So that is a direct benefit will get,” he added.

Rungta also said that currently their suppliers are restricted to only Petronet LNG and 3 oil companies. However, once it is connected with the national grid, they can get the best prices available in the world market.

On the company’s performance, he said that they are expecting a revenue growth of 20-25 percent in FY21. He also said that the capex outlay stands at Rs 700 crore and they have floated a tender in December to expand capacity.

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(Edited by : Abhishek Jha)