Government mulling to split GAIL by selling pipeline business to strategic investor
NEW DELHI: The government is considering to split state-run gas utility GAIL (India) Ltd by hiving off its pipeline business into a separate entity and selling it off to strategic investors, 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 own fuel.
The sources said that to resolve the conflict arising out of the same entity owning the two jobs, bifurcating GAIL is being considered.
