Cabinet to consider splitting GAIL, pipeline business not to be sold before 2022
NEW DELHI: The Union Cabinet may by next month consider a proposal to hive off state-run gas utility GAIL (India) Ltd’s pipeline business into a separate entity but its sale to a strategic investor may not happen before 2022, sources privy to the development said.
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.
Users of natural gas have often complained about not getting access to GAIL’s 11,551-km pipeline network to transport their fuel.
Sources said to resolve the conflict arising out of the same entity owning the two jobs, bifurcating GAIL is being considered.
