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
Infrastructure Energy

South West Pinnacle Wins Rs 30 Cr Oman Mining Contract

South West Pinnacle Exploration Ltd has secured a Rs 30 crore contract from Minerals Development Oman (MDO) for mining exploration in concession areas 12B and 13.The two-year project will be carried out via Alara Resources LLC, a JV in Oman. MDO, backed by Oman’s investment authorities, focuses on monetising mineral wealth.The contract covers copper, gold, and chromite and highlights South West Pinnacle’s growing footprint in international exploration and mining services. ..

Next Story
Equipment

Godrej GEG Boosts Intralogistics with AI and Green Tech

Godrej Enterprises Group (GEG) is revolutionising warehouse and factory logistics through its Material Handling Equipment and Storage Solutions arms by integrating AI, IoT, and automation.With 20–25% market share and 85% local sourcing, GEG champions Atmanirbhar Bharat and sustainability. The Chennai plant, a green manufacturing leader, uses RoHS-compliant materials and has slashed energy consumption by 60%.GEG serves e-commerce, FMCG, retail, and cold chains with high-performance racking and electric forklifts. Upcoming IoT-enabled forklifts and telematics solutions aim to improve speed, sa..

Next Story
Infrastructure Urban

Amit Shah Inaugurates Key Projects Across Gujarat

Union Home Minister Amit Shah inaugurated and laid the foundation stone for various projects in Gujarat’s Panchmahal district and Ahmedabad.In Godhra, he inaugurated the Center of Excellence building, sports complex, reservoir, and Miyawaki plantation. In Ahmedabad, he unveiled a new cooperative complex in Adaroda village and a primary school in Juwal.These projects, under the Model Co-op Village scheme, aim to boost education, sustainability, and rural development across the state. ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?