Petchem down; asked PNGRB to halt LPG fee revision: GAIL

BC Tripathi, chairman, GAIL explains to CNBC-TV18 that the petrochemical business was adversely impacted by glitches such as a plant shutdown and power-grid failure. Tripathi adds that the PSU is in talks with PNGRB over the reduction of LPG tariff.

Below is an edited transcript of the interview on CNBC-TV18. Q: What kind of petrochemical  volumes that GAIL has reported this quarter and what could be the sustainable growth in volume in the next couple of quarters?
A: The turnover this quarter was reported at Rs 11,361 crore which is up by 17 percent to corresponding quarters. Though the profit was Rs 985 crore, it but this profit we have the impact of the higher subsidy which has gone up to Rs 786 crore for the corresponding quarter and with that we have not been able to report the profit-after-tax which is down 10 percent as compared to the corresponding quarter of the last financial year. Q: How have the petrochemical volumes been this time around?
A: With regards to petrochemicals, the plant shutdown and grid failure caused production to be comparatively low this time. And as regards to gas transmission, it is at the level of 106 million standard cubic metres a day (mmscmd) per day, which is also down by 11 mmscmd as compared to the previous quarter largely because of the reduction in supply from the eastern coast and supply from Panna-Mukta and Tapti (PMT). Q: How has the trading income been this time around?
A: Trading income has been good and has grown almost 30 percent in trading income. The overall trading volume was Rs 8,732 crore as compared to Rs 6,735 crore of the previous quarter. Q: Could you reveal the details of the one extra-ordinary you recognised with regards to the LPG pipeline tariff revision?
A: The LPG pipeline the provisional order from the Petroleum and Natural Gas Regulatory Board (PNGRB) has directed a reduction in the tariff. But we are still talking to the PNGRB for a final appeal. Only when a final decision has been taken, we will be able to take a call on the LPG tariff. Q: What is the exact subsidy break-up for this quarter?
A; The subsidy for GAIL this quarter has increased by 39 percent as compared to the last financial year. Q: What are the realisations within the LPG business for this quarter and when do you expect to see recovery?
A: This quarter, the overall LPG subsidy has gone up to Rs 786 crore, which is up by 39 percent as compared to the previous quarter.