The Union cabinet is expected to soon consider the oil ministry’s proposal to hive off state-owned GAIL’s pipeline business into a separate entity, which is expected to be considered for a strategic sale at a later date.
The ministry, as part of the unbundling of GAIL, has suggested that two entities be formed — one with marketing operations and the other, the pipeline company.
GAIL’s core business after the bifurcation would be the marketing of natural gas and petrochemicals production.
It will have to hire capacity in pipelines from the subsidiary and pay regulator-approved tariff on the same.
