Cabinet move to end GAIL monopoly

The Union cabinet may soon consider the oil ministry’s proposal to set up an independent gas pipeline operator which would end the monopoly of state-owned GAIL in the pipeline business.

The petroleum ministry, which has held inter-ministerial consultations on setting up a transport service operator (TSO), would send a formal proposal to the cabinet soon and the issue would be taken before the end of this fiscal.

Officials said the operator would be put in place to manage the common carrier part of the gas pipeline infrastructure.

The TSO will be entrusted with the task of booking pipeline capacity for transport of gas from producers to the consumers on payment of a fee to be decided by the regulator.