Coal News We love to talk!
Amid talks of merger of public sector oil and gas companies, the government is considering a proposal to split GAIL (India) with the marketing operations spun off into a separate company. Sources told TOI that the plan is being discussed in the petroleum ministry as the Centre is unhappy with the state-run player's performance in building a pipeline network in addition to a possible conflict of interest in its role as the infrastructure provider as well as a carrier.
"It is like building a road and also deciding who can ply and at what cost," said a source, who did not wish to be identified. The plan to split the company, which was set up mainly to develop gas sector infrastructure in the country, has been discussed in the past too, including by Atal Bihari Vajpayee government, but it did not materialise.
Natural gas transmission and marketing are the core businesses of the PSU, which has also diversified into petrochemicals and renewable energy. Last year, GAIL earned over 70% revenue from marketing operations, while over 40% of the profit came from natural gas transmission. The discussions come at atime when the government is working on completing ONGC acquisition of Hindustan Petroleum Corporation to bolster both the entities.
The deal will help the government garner around Rs 35,000 crore by way of disinvestment receipts. While other merger plans will wait until the next year, Bharat Petroleum and Indian Oil have made a pitch to take over GAIL, a news agency reported last month. The sources, however, said the government would first prefer to unbundle GAIL before deciding on consolidation.
"By this time the entire country should have had a pipeline network but we have been very slow," said a source, adding that pipelines and delivering gas at doorsteps is a major thrust of the Narendra Modi administration. Although the government is discussing the plan, sources clarified, there is no formal decision on the issue, which will be finalised only after consultation with all stakeholders.
- Natural gas losing its shine as Asia holds faith in coal power Read more
- Supreme Court seeks govts reply on IOC-GAIL dispute over pipeline Read more
- World Bank wont fund coal-related projects in India Read more
- Falling crude may burn a hole in RIL Q3 numbers Read more
- Oil India-led consortium eyes stake in Russian Arctic oilfield Read more
- Government deregulates diesel; prices to be linked to market Read more
- Indias crude output falls but consumption soars Read more
- No power tariff hike in AP next fiscal Read more
- Is BHEL's worst behind it as orders trickle in? Read more
- IOC to buy 10% in Petronas' LNG project for $900 mn Read more