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Last Updated : Jan 04, 2018 04:12 PM IST | Source: Moneycontrol.com

Government may split GAIL India into two separate entities

The company is in the business of transmission and marketing of natural gas in India. It has also diversified into petrochemicals and renewable energy.

 
 
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The Centre is mulling a proposal to split state-owned gas utility GAIL India Limited into two separate entities, reports The Times of India.

The report said that the petroleum ministry is toying with the idea of making the marketing operations into a full-fledged company as the Centre is unhappy with GAIL’s performance in building a pipeline network. There also seems to be a conflict of interest of its role as the infrastructure provider as well as a carrier.

The NDA government during the Atal Bihari Vajpayee regime also thought about splitting the company but there was no concrete progress on that front.

The company is in the business of transmission and marketing of natural gas in India. It has also diversified into petrochemicals and renewable energy.

GAIL owns and operates approximately 11,000 km of natural gas pipeline network and sells around 60 percent of natural gas in the country. It has around 8 percent share in LPG production with 4 percent in LPG sales, as per the information available on the company’s website.

The petrochemical marketing looks after the functions of petrochemical products which include product pricing, sales and production planning.

The company reported a revenue of Rs 48,882.99 crore with a net profit of Rs 3,502.91 for FY16-17. Natural gas transmission accounts for 40 percent of the profit for the company.
First Published on Jan 4, 2018 04:12 pm
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