It is my privilege to share with you the highlights of yet another year
of successful performance of your Company. During the financial year
2011-12, Turnover increased by 24% to Rs. 40,281 Crore and despite a
higher petroleum subsidy, Profit after Tax increased to Rs. 3,654 Crore.
Your Company had the distinction of being the only company from Asia to
receive the World''s No. 1 company in Downstream Operation award for
2011 by Platts. Your Company was also ranked the number 2 Gas Utility
in Asia in the Platts Top 250 Energy Companies Rankings. Your Company
once again maintained its excellent performance rating for 2010-11
under the MoU with Government of India.
This performance of your Company was in the backdrop of a slowing
economic environment. Although India''s economic growth has decelerated
to below 7% during 2011-12, a sustained growth for Indian economy may
not be difficult to attain in the coming years due to Government
initiatives in the areas of policy, price stability and continuing
Ensuring requisite supply of energy is crucial to attaining this
growth. Currently, India is the 4th largest energy consumer in the
world and is expected to be the 3rd largest by 2025. Demand for clean
energy sources like natural gas is growing exponentially and meeting
this demand effectively is essential to support growth. India''s
consumption of natural gas has grown faster than all other fossil
fuels, growing at a CAGR of over 11% in the last few years.
Your Company is continuing to pursue greater energy security for India
through ensuring sufficient availability and access to gas and other
sources of clean energy. We are working towards achieving the goals as
envisaged in Strategy 2020 of your Company to spur social, economic and
environmental growth based on clean energy. To meet the short-fall in
supply of domestic gas, your Company is in discussions with several
global sellers. Efforts are also being made to secure additional
supplies from domestic sources. The pipelines being laid by your
Company would help in establishing an integrated National Gas Grid all
over India within a few years'' time.
In order to further strengthen your Company''s position as India''s
premier integrated gas Company, it is setting up LNG import
infrastructure and focussing on growing areas like city gas
distribution, expanding petrochemicals business, diversifying into high
margin downstream areas in gas value chain and creating a portfolio of
renewable businesses. The expansion of existing petrochemical plant at
Pata is ahead of schedule and physical progress of 48% has been
achieved. Commissioning of the LNG re-gasification terminal at Dabhol
is expected this year which will enable better utilization of your
Your Company is expanding its global presence to acquire new expertise
and resources through overseas tie-ups in emerging areas such as Shale
gas. This will allow it to establish a foothold in resource rich
countries while complementing your Company''s core business. Your
Company successfully concluded acquisition of 20% interest in Carrizo
Oil & Gas Inc.''s Eagle Ford Shale acreage in the USA through its
recently incorporated subsidiary, GAIL Global (USA) Inc. Besides this,
your Company has signed a 20-year Sales and Purchase Agreement with
Sabine Pass Liquefaction LLC, a unit of Cheniere Energy Partners, for
supply of 3.5 million tonnes per year of LNG. This has set a new trend
in global gas trade as it is one of the first agreements signed by an
Asian entity which has price linkage to gas rather than oil. With
respect to the trans-national pipeline TAPI, your Company has executed
the Gas Sales & Purchase Agreement with Turkmengaz for 38 MMSCMD for 30
To capture the growth in renewable energy, your Company has moved from
being a captive producer to a commercial producer after commissioning
around 100 MW of wind energy projects last year. Your company intends
to further expand its wind and solar energy portfolio. To achieve these
and other goals, your Company continually strives to develop and
enhance the capacity and capability of its existing talent pool.
Your Company follows a growth path that is not only
environment-friendly but also creates value for the society and other
important stakeholders. I am happy to share with you that your Company
released its first Sustainability Report for the year 2010-11. Moving
another step forward, your Company became a signatory to the United
Nations Global Compact (UNGC) last year to further align its operations
and strategies with the ten universally accepted principles of UNGC.
Your Company is also the first in India''s Oil and Gas Sector to be
listed in BSE- GREENEX, the first environment friendly equity index
launched by Bombay Stock Exchange. Your Company''s Corporate Social
Responsibility programmes have been successful in making a long term
impact on the lives of the disadvantaged segment of society and towards
creation of sustainable livelihoods.
Your Company continues to set benchmarks in the area of corporate
governance. In yet another recognition of this, it was conferred with
11th ICSI National Award, 2011 for Excellence in Corporate Governance.
I would like to convey my sincere gratitude for your support and
confidence which has enabled us to reach this and other milestones.
Your Company remains committed to uphold the highest standards of
governance and pursue higher value creation for all stakeholders.
Chairman & Managing Director