GAIL opposes government’s hive-off plan
State-owned gas transporter GAIL India is against the government move to split it into a marketing and a pipeline company as this would impact its ability to take business risk even as the Modi government moves ahead with the bifurcation plan.
GAIL sources said they have flagged the PSU’s concerns with the oil ministry and expressed the hope that the unbundling would not weaken the PSU and its ability to take business risk.
They pointed out that “businesses of gas trading and transportation are in compliance with the existing regulatory framework and the third party has access to its pipeline infrastructure, in a fair, transparent and equitable manner. The tariff is regulated and vetted by an independent regulator PNGRB”.
