hyderabad gas authority of india and hindustan petroleum corporation on tuesday signed a memorandum of understanding for setting up a joint venture company for distribution of natural gas autolpg and piped gas in andhra pradesh chairman and managing director of gail proshanto banerji told reporters after the signing of the mou that the agreement is a major step towards development of the clean fuel distribution infrastructure in the state the proposed jv will distribute natural gas for residential commercial and automotive sector in the state in a phased manner and was the third such agreement that gail signed after delhi and mumbai with bharat petroleum and british gas respectively banerji said he said rs 500crore visakhapatnamsecunderabad pipeline jv project will have 225 per cent equity by both partners while the state government will have an option of subscribing to 5 per cent of the equity the remaining 50 per cent equity capital shall be offered to financial institutions both domestic and foreign and the public he added hpcl marketing director n k puri said the ecofriendly project would go a long way in bringing down the pollution the company may cut down sulphur content from one per cent to 025 per cent in diesel he added as per the agreement hpcl will assist in distribution of lpg to industrial units while gail will provide its technical expertise in construction operation and implementation of cng and piped gas distribution system puri added