Replying to a notice by the Securities and Exchange Board of India (SEBI) over non-disclosure of Department of Telecommunications (DoT) assessment orders/demand notices, GAIL on May 6 said the demand was not legally tenable.
GAIL first cut capacity of the 400,000 tonnes a year polyethylene plant at its Pata complex by half as two-thirds of trucks that used to transport finished products to users stopped operations soon after the lockdown was imposed, sources privy to the development said.
The bulk of the incremental demand will come from city gas distribution (CGD) operations being rolled out in 400 districts.
Gas pipelines are planned to take the fuel to the east and northeast regions as well as to consumers in the south as part of the government push to raise the share of natural gas in India's energy basket to 15 per cent by 2030 from the current 6.2 per cent, he said.
The move will hurt the companies enjoying the monopoly status all these years, but they would be compensated by way of higher volumes if they play the game right
“For the next year it is around Rs 5,900 crore. We don’t have very significant free cash but at the same time we also don’t have significant debt,” Manoj Jain, CMD of GAIL said.
A sharp drop in natural gas prices offers government the opportunity to reignite gas-based power units
The net profit at Rs 1,250.65 crore, or Rs 2.77 a share, in October-December, was 25.6 percent lower than Rs 1,681.23 crore, or Rs 3.73 per share, profit earned in the same period a year ago, the company said in regulatory filings.
GAIL is India's biggest natural gas marketing and trading firm and owns more than 70 per cent of the country's 16,981-km pipeline network, giving it a stranglehold on the market.
After an initial blip, all the stocks of non-telecom companies on whom the demands have been raised have recovered from their losses
Pradhan said the approach to the Supreme Court and discussions with the DoT were being conducted simultaneously.
The gas pipelines are planned to take the fuel to the east and northeast regions as well as to consumers in the south as part of the government push to raise the share of natural gas in India's energy basket to 15 per cent by 2030 from the current 6.2 per cent, he said.
With gas pipelines yet to reach most parts of eastern India, GAIL has hired specialised cryogenic bullet trucks to transport imported liquefied natural gas from Dahej in Gujarat to Bhubaneshwar, where it is used as CNG to fuel automobiles and piped gas as cooking fuel in kitchens, company Chairman and Managing Director Ashutosh Karnatak said.
“We are now checking with our legal advisor whether this applicability will be there for PSUs, and particularly to GAIL,” said Singh.
To meet the shortfall in its revenue target the government has asked its favourite milch cows to deliver some more
In five to six months, the firm will start supplying piped natural gas to 5,000 households in Chakrata, Dehradun, Doiwala, Kalsi, Rishikesh, Tyuni and Vikasnagar areas of Dehradun district, he added.
India's largest oil firm IOC, which recently commissioned a 5 million tonne liquefied natural gas (LNG) import terminal at Ennore in Tamil Nadu, as well as gas utility GAIL have "both technical and financial capability to develop their own LNG terminal," he told the Lok Sabha.
The company had announced an investment of $2 billion over the next 10 years in shale gas extraction project.
Net Sales are expected to decrease by 5.1 percent Y-o-Y (down 0.1 percent Q-o-Q) to Rs. 18,286 crore, according to Sharekhan.
GAIL is India's biggest natural gas marketing and trading firm and owns more than two-thirds of the country's 16,234-km pipeline network, giving it a stranglehold on the market.
Net Sales are expected to decrease by 5.9 percent Y-o-Y (down 2.1 percent Q-o-Q) to Rs. 17,924.4 crore, according to Kotak.
In March 2015, Prime Minister Narendra Modi had pledged to provide piped natural gas connections to one crore households "in the next four years".
GAIL currently operates 11,000-km of pipeline network and markets two-thirds of all natural gas sold in the country.