GAIL may split, to launch InvIT

29 Jan 2021 CW Team

The natural 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.

GAIL owns and operates a natural gas pipeline network spanning 12,502 km, mostly in the northern, western and southern part of the country. The company is building more pipelines in the eastern part of the country.

The two pipelines proposed for InvIT had incurred over Rs 3,000 crore spending. The move comes ahead of a planned spin-off of GAIL's pipeline business into a 100% subsidiary. Media sources said the InvIT might involve selling a 10-20% stake initially. InvITs are like a mutual fund, enabling direct investment of small amounts of money from possible individual and institutional investors in infrastructure to earn a small portion of the income as a return.

4th Indian Cement Review Conference 2021

17-18 March

Click for event info

Make in Steel 2021

24 February

Click for event info

GAIL is India's biggest natural gas marketing and trading firm and owns more than 70% of the country's 16,981 km pipeline network.

Users of natural gas have often complained about not "fairly" having access to GAIL's 12,160 km pipeline network to transport their fuel. The company's proposed bifurcation could resolve the conflict arising out of the same entity owning two jobs.

GAIL's core business after the bifurcation would be the marketing of natural gas and petrochemical production. It will have to hire capacity on pipelines from the subsidiary and pay the regulator approved traffics for the same.

The proposal involves separating the pipeline division's accounts and transferring employees directly connected with the pipeline operations to the new subsidiary, said sources.

GAIL already holds separate accounts for its marketing and gas pipeline businesses, making them easier to split into two entities.

Indian public sector natural gas processing and distribution company Gas Authority of India Ltd (GAIL) plans to launch an Infrastructure Investment Trust (InvIT) of its two gas pipelines between Bengaluru and Dahej, ahead of a proposed splitting of the pipeline business from the gas marketing function, sources said. The natural 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. GAIL owns and operates a natural gas pipeline network spanning 12,502 km, mostly in the northern, western and southern part of the country. The company is building more pipelines in the eastern part of the country. The two pipelines proposed for InvIT had incurred over Rs 3,000 crore spending. The move comes ahead of a planned spin-off of GAIL's pipeline business into a 100% subsidiary. Media sources said the InvIT might involve selling a 10-20% stake initially. InvITs are like a mutual fund, enabling direct investment of small amounts of money from possible individual and institutional investors in infrastructure to earn a small portion of the income as a return.4th Indian Cement Review Conference 202117-18 March Click for event infoMake in Steel 202124 February Click for event info GAIL is India's biggest natural gas marketing and trading firm and owns more than 70% of the country's 16,981 km pipeline network. Users of natural gas have often complained about not fairly having access to GAIL's 12,160 km pipeline network to transport their fuel. The company's proposed bifurcation could resolve the conflict arising out of the same entity owning two jobs. GAIL's core business after the bifurcation would be the marketing of natural gas and petrochemical production. It will have to hire capacity on pipelines from the subsidiary and pay the regulator approved traffics for the same. The proposal involves separating the pipeline division's accounts and transferring employees directly connected with the pipeline operations to the new subsidiary, said sources. GAIL already holds separate accounts for its marketing and gas pipeline businesses, making them easier to split into two entities.

Infrastructure Energy

14 Oct 2025

Maharashtra Clears Green Power Use For Data Centres

In a major policy boost for India’s expanding digital infrastructure, the Maharashtra government has approved a plan allowing data centres in Mumbai, Navi Mumbai, Thane, and surrounding regions to generate and distribute their own renewable energy. The state energy department issued an order enabling data centre parks and individual units, recognised by the industries department, to set up captive power generation and distribution facilities. The permission applies exclusively to renewable energy sources such as solar, wind, or hydro power. Industry experts have hailed the decision as tran..

Real Estate

14 Oct 2025

GHMC Launches Drive To Boost Property Tax Revenue

The Greater Hyderabad Municipal Corporation (GHMC) has launched a special campaign to enhance property tax revenue from non-residential and commercial properties by reassessing their total built-up area. Any discrepancies identified during inspections will trigger immediate revision of both property tax and trade licence fees, officials said. The initial phase of the drive focuses on shopping malls across Hyderabad, with over 300 such establishments identified in the twin cities. After the mall inspections, GHMC will extend the verification process to other non-residential properties, includi..

Infrastructure Urban

14 Oct 2025

Cholamandalam To Raise Rs 10 Billion Via NCD Issue

Cholamandalam Investment and Finance Company has invited bids to raise up to Rs 10 billion through secured non-convertible debentures (NCDs) maturing on 14 October 2030, offering a coupon rate of 7.58 per cent. The NCD issue, announced on Monday, comes at a time when corporate bond activity — which saw strong momentum in the first quarter of FY26 — has slowed during the second quarter owing to rising borrowing costs. However, market analysts anticipate a rebound in the coming months as easing bond yields could reignite investor appetite for corporate debt instruments. The company’s fu..