A proposal to bifurcate state-owned gas utility GAIL (India) Ltd has been scrapped for now, and instead the company will monetise some of its pipelines by selling a minority stake through InvIT.
GAIL Chairman and Managing Director Manoj Jain said the company has sent a plan for monetising two of its pipelines to the Ministry of Petroleum and Natural Gas and an Infrastructure Investment Trust (InvIT) is possible within the current fiscal if approvals come soon.
GAIL is India’s biggest natural gas marketing and trading firm and owns nearly three-fourths of the country’s 17,126-km gas pipeline network, giving it a stranglehold on the market.
To resolve the issue, it was proposed that GAIL’s pipeline business should be hived off into a separate entity.
