+
GAIL may split, to launch InvIT
OIL & GAS

GAIL may split, to launch InvIT

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 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.

Next Story
Real Estate

Shriram Properties Launches ‘Codename: The One’ in Bengaluru

Shriram Properties (SPL), a leading real estate developer focused on the mid-market and mid-premium segments, has announced the launch of its latest residential project under the banner “Codename: The One” in Bengaluru’s Electronic City corridor. This feature-rich gated community will offer 340 spacious 2- and 3-BHK residences, with a total saleable area of approximately 5 lakh square feet and an estimated revenue potential of over Rs 3.5 billion. The project is expected to be developed over a span of more than three years.  Strategically located near the Bommasandra Metro stat..

Next Story
Resources

India Warehousing Show 2025 Closes with Strong Global Presence

The 14th edition of the India Warehousing Show (IWS) 2025 concluded successfully at Yashobhoomi (IICC), Dwarka, drawing participation from over 300 exhibitors across 15 countries and welcoming 15,000+ visitors. Recognised as India’s leading platform for warehousing and logistics excellence, IWS 2025 offered a comprehensive display of cutting-edge automation, sustainable warehousing solutions, and next-gen supply chain technologies. The show was inaugurated by Shri Pankaj Kumar, Joint Secretary – Logistics, DPIIT, Ministry of Commerce and Industry, Government of India. In his opening a..

Next Story
Equipment

MHIET Launches 450kW Gas Cogeneration System with H₂ Co-Firing

Mitsubishi Heavy Industries Engine & Turbocharger (MHIET), part of the Mitsubishi Heavy Industries Group, has launched a new 450kW gas cogeneration system, the SGP M450, jointly developed with Toho Gas Co.,. The system supports hydrogen co-firing at up to 15 vol per cent, with no loss in performance or reliability.  The system is currently available in the Japanese market, and has been developed from the existing GS6R2 city gas engine platform. Key modifications were made to the fuel gas and engine control systems to enable hydrogen co-firing.   Verified through de..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?