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Government mulling to split GAIL into 2 units: Report

04 Jan 2018 Evaluate

The government is reportedly mulling a proposal to split GAIL (India) with the marketing operations spun off into a separate company. The plan is being discussed in the petroleum ministry as the Centre is unhappy with the state-run player’s performance in building a pipeline network in addition to a possible conflict of interest in its role as the infrastructure provider as well as a carrier.

GAIL India is India’s principal Natural Gas Company with activities ranging from Gas Transmission and Marketing to Processing (for fractionating LPG, Propane, SBP Solvent and Pentane); transmission of Liquefied Petroleum Gas (LPG); production and marketing of Petrochemicals like HDPE and LLDPE and leasing bandwidth in Telecommunications.

Peers
Company Name CMP
GAIL (India) 170.30
Gujarat Energy 230.90
Indraprastha Gas 140.25
Mahanagar Gas 1036.30
Adani Total Gas 589.30
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