Big deal on table as UK minister meets Narendra Modi today

GSPC may buy 65.12 per cent stake in GGCL from British Gas.

A major agreement is likely to be signed between British Gas (BG) and Gujarat State Petroleum Corporation (GSPC) when British minister of state for Foreign Office Hugo Swire meets Gujarat Chief Minister Narendra Modi in Gandhinagar on Wednesday.

Swire, who is responsible for UK's relations with India, is accompanied by a large business delegation. The minister is scheduled to address the media in second half of the day.

According to sources in the state's energy and petrochemical department, the agreement is about GSPC buying out the entire stake of BG in Gujarat Gas Company Limited (GGCL).

GSPC had in October 2012 announced to acquire 65.12 per cent stake in GGCL for Rs 2,464 crore from British Gas for Rs 295 per share. BG's stake is to be acquired by Gujarat Distribution Networks Ltd (GDNL), which is fully owned by GSPC.

GGCL has distribution rights of gas in south Gujarat and caters to over 3.5 lakh consumers.

Swire's visit is in line with the David Cameron government's decision to re-engage with Gujarat after its decade-long boycott of the Modi government following the post-Godhra riots in 2002.

Britain's rethink on Gujarat first became evident in October last year when Swire sent British High Commissioner James Bevan to meet Modi.

The country had participated in a big way at the sixth Vibrant Gujarat Global Investor's Summit held in January this year.

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