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GAIL India spurts on mulling legal action against PNGRB on single tariff structure

14 May 2013 Evaluate

GAIL (India) is currently trading at Rs 338.85, up by 6.70 points or 2.02 % from its previous closing of Rs 332.15 on the BSE.

The scrip opened at Rs. 333.00 and has touched a high and low of Rs 340.50 and Rs 333.00 respectively. So far 18508 shares were traded on the counter.

The BSE group 'A' stock of face value Rs 10 has touched a 52 week high of Rs 396.00 on 05-Oct-2012 and a 52 week low of Rs 300.40 on 26-Mar-2013.

Last one week high and low of the scrip stood at Rs 348.05 and Rs 329.00 respectively. The current market cap of the company is Rs 43071.15 crore.

The promoters holding in the company stood at 57.34% while Institutions and Non-Institutions held 38.68% and 2.92% respectively.

State-run GAIL India is considering legal options against Petroleum and Natural Gas Regulatory Board (PNGRB) on tariff model, given that revised tariff would impact the financials of the company. However, before undergoing a legal battle, the company will prefer to hold a dialogue with the regulator.

With the new tariff model, the company may end up losing about Rs 500 crore as the regulator has set a uniform tariff of Rs 5.56/mmBtu for GAIL’s 4-pipelines KG Basin Network, with retrospective effect (from November 20, 2008). GAIL has been charging Rs 11.44/mmBtu for Tatipaka-Kakinada-Kovuur network and Rs 28.38/mmBtu for Tatipaka-Kondapalli plus Lingala network. The company has argued that these tariffs were fixed before the PNGRB came into existence.

The company currently is studying the order, which is based on the assumption of gas supply of 16 mmscmd from KG Basin Network. However, the transmission company largely feels this order to unfair as its gets only 6 mmscmd of gas from the network.

GAIL India Share Price

166.50 -0.95 (-0.57%)
08-May-2026 16:59 View Price Chart
Peers
Company Name CMP
GAIL India 166.50
Gujarat Gas 396.55
Indraprastha Gas 166.25
Mahanagar Gas 1171.95
Adani Total Gas 633.70
View more..

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