GAIL bifurcation put on hold

08 Feb 2021 CW Team

It was suggested that GAIL's pipeline business be hived off into a separate entity, to resolve the issue.

A ministry official said GAIL has major plans to double its pipeline network to 34,000 km and there is a realisation that its ability to borrow funds to fund these should not be hampered.

The plan was to transfer GAIL's pipeline business into a subsidiary, while GAIL was to hold the core business of marketing natural gas and petrochemical production.

The official said GAIL would monetise some of its pipelines by selling a minority stake through instruments like Infrastructure Investment Trust (InvIT).

GAIL plans to monetise Dabhol-Panvel-Uran-Dahej pipeline and the Bengaluru-Dabhol pipeline.

Make in Steel 2021

24 February

Click for event info

4th Indian Cement Review Conference 2021

17-18 March

Click for event info

InvITs are similar to mutual funds, enabling direct investment of small amounts of money from possible individual / institutional investors in infrastructure to earn a minor portion of the income as a return.

The gas company will retain a majority stake in the pipelines that run from Dahej in Gujarat to Dabhol in Maharashtra and from there to Bengaluru in Karnataka.

The ministry official said the bifurcation of GAIL was planned to address natural gas users' complaints of not getting fair access to the GAIL pipeline network to transport their fuel.

The conflict arising out of the same entity owning to jobs will get resolved by setting up an independent transport system operator (TSO), which will manage the common carrier capacity of GAIL and other pipelines in the country.

Also read: GAIL may split, to launch InvIT

Image Source

The Ministry of Petroleum and Natural Gas (MoPNG) has put on hold a plan to bifurcate state-owned gas utility Gas Authority of India Ltd (GAIL India Ltd) to dilute the firm's ability to finance the massive infrastructure building plan, said sources. It was suggested that GAIL's pipeline business be hived off into a separate entity, to resolve the issue. A ministry official said GAIL has major plans to double its pipeline network to 34,000 km and there is a realisation that its ability to borrow funds to fund these should not be hampered. The plan was to transfer GAIL's pipeline business into a subsidiary, while GAIL was to hold the core business of marketing natural gas and petrochemical production. The official said GAIL would monetise some of its pipelines by selling a minority stake through instruments like Infrastructure Investment Trust (InvIT). GAIL plans to monetise Dabhol-Panvel-Uran-Dahej pipeline and the Bengaluru-Dabhol pipeline.Make in Steel 202124 February Click for event info4th Indian Cement Review Conference 202117-18 March Click for event info InvITs are similar to mutual funds, enabling direct investment of small amounts of money from possible individual / institutional investors in infrastructure to earn a minor portion of the income as a return. The gas company will retain a majority stake in the pipelines that run from Dahej in Gujarat to Dabhol in Maharashtra and from there to Bengaluru in Karnataka. The ministry official said the bifurcation of GAIL was planned to address natural gas users' complaints of not getting fair access to the GAIL pipeline network to transport their fuel. The conflict arising out of the same entity owning to jobs will get resolved by setting up an independent transport system operator (TSO), which will manage the common carrier capacity of GAIL and other pipelines in the country. Also read: GAIL may split, to launch InvIT Image Source

Infrastructure Urban

07 Nov 2025

Welspun Enterprises Wins 910 MLD Panjrapur WTP Contract

Welspun Enterprises (WEL), the infrastructure and energy arm of Welspun World, has secured a major contract from the Brihanmumbai Municipal Corporation (BMC) to design, build and operate a 910 million litres per day (MLD) Water Treatment Plant (WTP) at Panjrapur, Maharashtra.Valued at approximately Rs 31.45 billion, the project encompasses end-to-end civil, mechanical, electrical and instrumentation works, including the construction of a treated water sump and pumping station. Of the total value, nearly Rs 11.56 billion is allocated to Operations & Maintenance (O&M), with an additional..

Infrastructure Energy

07 Nov 2025

Mitsubishi Power Wins Boiler Upgrade Contract for O Mon 1 Plant

Mitsubishi Power, a power solutions brand of Mitsubishi Heavy Industries, (MHI), has been awarded a contract to support the oil-to-natural-gas fuel conversion at the O Mon 1 Thermal Power Plant in Can Tho, southern Vietnam. As the OEM of the plant’s existing boiler, Mitsubishi Power will supply key equipment—including new gas burners—and implement a selective catalytic reduction (SCR) system to reduce NOx emissions and help the plant meet stricter environmental standards.The O Mon 1 facility includes two 330 MW units that commenced operations in 2009 and 2015, with all major equipment or..

Equipment

07 Nov 2025

Liebherr’s 10,000th XPower Wheel Loader Joins BERGER’s Fleet

BERGER Rohstoffe GmbH has welcomed the 10,000th Liebherr XPower wheel loader to its operations at the Schlag granite quarry in Passau. The milestone machine, officially handed over at Liebherr’s Bischofshofen plant in May 2025, underscores the long-standing partnership between BERGER, Liebherr, and the Beutlhauser Group. Equipped with Liebherr’s signature power-split travel drive, the new L 580 XPower is already delivering strong results under demanding quarry conditions.At the Schlag quarry, BERGER Rohstoffe processes approximately 200,000 tonnes of Bayerwald granite annually into high-qu..