Moneycontrol Bureau
Shares of GAIL India gained more than 3 percent intraday Thursday after the oil & gas regulator revised KG basin natural gas pipeline tariff rate.
Petroleum and Natural Gas Regulatory Board (PNGRB), on March 15, revised KG basin pipeline tariff to Rs 45.32 per MMBTU (million British thermal unit), which is significantly higher compared to previous rate of Rs 5.56 on gross calorific value basis.
However, tariff rate was significantly lower compared to Rs 180.77 per MMBTU calculated by GAIL in its report that sent to PNGRB for consideration.
Revised tariff will be effective between April 2016-February 11, 2017 while the previous rate has been continued from 2008-09 to 2015-16. PNGRB says economic life of KG basin natural gas pipeline network will end on February 11, 2017.
According to IDFC, at current flow volumes of around 5 mmscmd, GAIL stands to gain profit before tax of Rs 260 crore from this order, which has a post-tax non-recurring impact of Rs 170 crore or Rs 1.4 per share for FY17.
At 10:17 hours IST, the scrip of GAIL India was quoting at Rs 347.20, up Rs 7.80, or 2.30 percent on the BSE.Posted by Sunil Shankar Matkar
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