GAIL Gas (GGL) and Vadodara Municipal Corporation (VMC) formed a join venture company which aims to double the number of piped natural gas (PNG) connections in the city in four years.

The civic body and the gas distribution firm finalised the joint venture agreement recently and signed a shareholders agreement.

The joint venture firm, named Vadodara Gas Ltd, would also aim to raise the number of CNG gas stations in the city so that the number of CNG-driven vehicles doubles.

In 2009, both the parties signed a memorandum of understanding (MoU) for the joint venture. But the board of both the organisations approved the venture only now after finalising asset valuation and share holding pattern.

GGL and VMC shall have an equal stake in the joint venture. The JV has an authorized share capital of Rs 215 crore and shall cater to the needs of the city and its adjoining areas.

According to the agreement, the chairman of Vadodara Gas will have a tenure of two years on a rotational basis between GGL and VMC. The managing director of JV will be from GGL, while director (commercial) will be from VMC.