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
Infrastructure Urban

KONE Opens India's First Digital Experience Centre in Pune

KONE, a global elevator and escalator manufacturer, has inaugurated its first Digital Experience Centre (DEC) in India, located in Pune. The facility aims to showcase how artificial intelligence (AI), connectivity and data-driven technologies can enhance customer experiences and improve building operations.The centre was inaugurated by Jussi Herlin, Executive Vice Chair, KONE Corporation; Philippe Delorme, President and CEO, KONE; and Nandan Nilekani, Co-founder and Chairman of the Board, Infosys.Designed as an interactive customer environment, the facility demonstrates digital solutions cover..

Next Story
Infrastructure Urban

CII GreenCo Launches Circularity Guidelines for Indian Industry

The Confederation of Indian Industry (CII) GreenCo Council has launched the CII GreenCo Circularity Guidelines – Pilot Version at the 17th CII GreenCo Waste & Resource Management Summit 2026 in Chennai. The initiative aims to strengthen resource efficiency, waste reduction and circular economy practices across Indian manufacturing and process industries.The guidelines introduce a structured framework with circularity indices covering raw materials, consumables, packaging and other resource inputs. These indicators will help industries assess existing practices, identify opportunities to ..

Next Story
Infrastructure Energy

Global Electronics Association Launches IPC-1783-CO2E Standard

The Global Electronics Association has introduced IPC-1783-CO2E, a new international standard aimed at improving consistency, transparency and comparability in product carbon footprint reporting across the electronics manufacturing industry.The standard, titled International Standard for Data Collection and Reporting of CO2 Equivalent (CO2e) Emissions for the Electronics Manufacturing Supply Chain, provides industry-specific guidance for collecting, estimating and reporting carbon emissions data.With increasing regulatory requirements and customer expectations, electronics manufacturers face c..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code