Govt to start asset monetisation plan by leasing GAIL’s gas pipelines
OIL & GAS

Govt to start asset monetisation plan by leasing GAIL’s gas pipelines

The monetisation programme of the central government worth Rs 6 trillion is starting by leasing out over 2,229km of gas pipelines of GAIL (India) Ltd to the private sector.

The government already started appointing finance advisers for the proposed deal, and many domestic and foreign investment banks have shown interest. By floating an infrastructure investment trust (InvIT), the plan is to monetize these assets where investors can put in funds and receive a part of the income as returns.

On 23 August, the finance minister, Nirmala Sitharaman, revealed plans to collect Rs 6 trillion between FY 2022-25 by renting various assets to the private sector as a part of a National monetisation Pipeline (NMP).

According to the media reports, the government believes that currently, GAIL pipelines have the strongest demand from private investors compared to all other assets headed for monetisation.

Recently, NITI Ayog informed that GAIL contributed to the development of the gas pipeline infrastructure and natural gas market. Currently, it has a gas pipeline network of 13,389 km, including a capacity of 204 million standard cu. m per day (mmscmd). The government plan is to monetize 8,154 km of these kinds of pipelines.

In recent years, GAIL has been running at 49-52% capacity usage levels. Though the cross-country pipelines record higher capacity utilisation levels, the total usage is still suboptimal.

For FY22, two pipelines with an overall length of 2,229 km Dahej-Uran-Panvel-Dabhol pipeline and the hol-Bengaluru pipeline, have been identified for monetisation. For FY 2023-25, an additional 5,925 km GAIL pipeline has been considered for monetisation.

The monetisation list of the government comprises 400 railway stations, 26,700 km of roads, 90 passenger trains, 286,000km of BharatNet fibre network, 28,608 circuit km transmission lines, and 14,917 towers maintained by Bharat Sanchar Nigam Ltd and Mahanagar Telecom Nigam Ltd. (BSNL).

Image Source


Also read: Govt’s infrastructure asset monetisation plan to raise Rs 6 lakh cr

Also read: Govt plans to monetise 25 AAI airports in next four years

The monetisation programme of the central government worth Rs 6 trillion is starting by leasing out over 2,229km of gas pipelines of GAIL (India) Ltd to the private sector. The government already started appointing finance advisers for the proposed deal, and many domestic and foreign investment banks have shown interest. By floating an infrastructure investment trust (InvIT), the plan is to monetize these assets where investors can put in funds and receive a part of the income as returns. On 23 August, the finance minister, Nirmala Sitharaman, revealed plans to collect Rs 6 trillion between FY 2022-25 by renting various assets to the private sector as a part of a National monetisation Pipeline (NMP). According to the media reports, the government believes that currently, GAIL pipelines have the strongest demand from private investors compared to all other assets headed for monetisation. Recently, NITI Ayog informed that GAIL contributed to the development of the gas pipeline infrastructure and natural gas market. Currently, it has a gas pipeline network of 13,389 km, including a capacity of 204 million standard cu. m per day (mmscmd). The government plan is to monetize 8,154 km of these kinds of pipelines. In recent years, GAIL has been running at 49-52% capacity usage levels. Though the cross-country pipelines record higher capacity utilisation levels, the total usage is still suboptimal. For FY22, two pipelines with an overall length of 2,229 km Dahej-Uran-Panvel-Dabhol pipeline and the hol-Bengaluru pipeline, have been identified for monetisation. For FY 2023-25, an additional 5,925 km GAIL pipeline has been considered for monetisation. The monetisation list of the government comprises 400 railway stations, 26,700 km of roads, 90 passenger trains, 286,000km of BharatNet fibre network, 28,608 circuit km transmission lines, and 14,917 towers maintained by Bharat Sanchar Nigam Ltd and Mahanagar Telecom Nigam Ltd. (BSNL). Image Source Also read: Govt’s infrastructure asset monetisation plan to raise Rs 6 lakh cr Also read: Govt plans to monetise 25 AAI airports in next four years

Related Stories

Gold Stories

Next Story
Products

Koemmerling opens Navi Mumbai experience centre

Koemmerling, a brand of the profine Group, has expanded its presence in the Mumbai metropolitan region with the opening of a new experience centre in Navi Mumbai and launched its Allure S46 minimal sliding door system for the Indian market.Located in CBD Belapur, the facility was inaugurated by Peter Mrosik, Owner and CEO, profine Group, along with Farid Khan, Chairman and Managing Director, profine India, and Kamal Bajaj, CEO, profine India.The company said the new centre will showcase its portfolio of uPVC and aluminium window and door systems to architects, developers and homeowners.The ina..

Next Story
Products

India's waterproofing market nears Rs 150 bn milestone

India's waterproofing industry is approaching a market size of Rs 150 billion and is expected to surpass the $2 billion milestone, according to speakers at the 2nd India International Waterproofers Conference & Expo 2026 organised by the Waterproofers Association of India (WAI) in New Delhi.The two-day event brought together more than 20 speakers, 55 international delegates and 53 exhibition booths, with discussions focusing on climate-resilient construction, advanced waterproofing technologies and international collaboration.Inaugurating the event, Durga Shanker Mishra, former Secretary, ..

Next Story
Real Estate

Dilip Buildcon Q1 FY27 Revenue at Rs 23.78 billion

Dilip Buildcon Limited reported consolidated revenue from operations of Rs 2,378 crore in Q1 FY27, along with EBITDA of Rs 429 crore and profit after tax of Rs 128 crore.Consolidated EBITDA margin stood at 18.1%, improving from 17.1% in Q4 FY26. On a standalone basis, revenue from operations was Rs 1,930 crore, EBITDA stood at Rs 199 crore and PAT was Rs 39 crore, with an EBITDA margin of 10.3%.The company’s order book stood at Rs 27,691 crore as of 30 June 2026, compared with Rs 28,830 crore as of 31 March 2026. Roads and highways accounted for 17.1% of the order book, irrigation and water ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement