Why GAIL is dropping plans to hive of its pipeline business – RTI

Posted On June 15th, 2021, Posted By - Admin

Why GAIL is dropping plans to hive of its pipeline business – RTI

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Why GAIL is dropping plans to hive of its pipeline business Posted on 06/12/2021 GAIL will not hive off its pipeline business according to company and government officials. The Indian Express examines why the plan was proposed, the opposition it faced, and why it was eventually scrapped.

State-owned natural gas marketer and pipeline operator GAIL will not hive off its pipeline business according to company and government officials. Petroleum Minister Dharmendra Pradhan had previously said the government was pursuing a separation of the two businesses to address issues of any conflict of interest posed by the gas pipeline major. The Indian Express examines why the plan was proposed, the opposition it faced, and why it was eventually scrapped.

Why was the government planning to bifurcate GAIL?

GAIL owns and operates a 13,200-km network of natural gas pipelines which accounts for over 70 per cent of the total natural gas pipeline network in India besides also being a gas marketer. The government had till late last year maintained that it was working on a plan to hive off the company’s pipeline business to address concerns of a conflict of interest of one of the largest pipeline operators also being a gas marketer.

What was the reaction by GAIL?

The plan faced stiff opposition from officers within GAIL who noted that the two businesses added stability to the company’s financials with the transmission business acting as a stable source of income when the gas marketing business was hit by fluctuations in international gas prices. GAIL officers also added that this financial stability would be a key factor in enabling GAIL to expand its pipeline network. Expansion of natural pipeline networks is a key step in the government’s plans to boost the share of natural gas in our primary energy mix to 15 per cent in 2030 up from about 6.2 per cent currently.

Company officials also noted that there was still under-utilisation in GAIL’s pipeline network and therefore there was no issue of a lack of access to GAIL’s pipeline network or preferential treatment to GAIL’s natural marketing arm over other companies. Officials also noted that they had learned through an RTI request that the Petroleum and Natural Gas Regulatory Board had not received any complaints regarding preferential treatment by GAIL for its marketing business.

Why did the government scrap the plan?

According to government officials aware of developments, the announcement of an independent pipeline system operator in the union budget had removed the need for a bifurcation of GAIL’s businesses. “An independent Transmission System Operator (TSO) will resolve the issue of non-discriminatory access to GAIL’s pipeline network as the TSO will be responsible for the booking and allocation of pipeline capacity,” said a government official.

Officials said the government’s key focus now was on ensuring that GAIL is able to meet targets on expansion of its pipeline network and that GAIL would monetise it’s pipeline network to fund further expansion of its pipeline network.

AddressTelephone No. and E-mail
Northern Zone Marketing Office(Delhi Branch Office and Chandigarh Zonal Office falls under jurisdiction of this office)
NCR Zonal Office
GAIL (India) Limited,
6th Floor, Jubilee Tower, 
B-35 & 36,
Sector-1, NOIDA – 201301
0120-2446400, 4862400 
ZOIC:Mr Kamlesh Sharma, Chief General Manager
E-mail ID:  k[dot]sharma[at]gmail[dot]co[dot]in
Contact Person: Mr Devkant Sinha, General Manager
E-mail ID:  d[dot]sinha[at]gail[dot]co[dot]in
Chandigarh Zonal Office
Chandigarh Zonal Office
GAIL (India) Limited
Udyog Bhavan Annexe Building
18 Himalaya Marg Sector 17
Chandigarh – 160017
91-172-2722135
ZOIC:
Lalit Bhatt, Zonal Chief General Manager,
E-mail ID: lbhatt[at]gail[dot]co[dot]in
Contact Person: Mr Prashant Kapoor, Chief Manager
E-mail ID: prashant[dot]kapoor[at]gail[dot]co[dot]in
Jaipur Zonal Office
GAIL (India) Limited
GAIL Vihar Sector-6
Vidhyadhar Nagar, Jaipur
Rajasthan -302023
0141-2230347,2230698,2230617,
ZOIC:
Mr Partha Jana ED (O&M-JLPL) & Zonal ED
E-mail ID:  p_jana[at]GAIL[dot]CO[dot]IN
Contact Person: Mr Rahul Choudhary, DGM (Marketing-PC)
rahul[dot]choudhary[at]gail[dot]co[dot]in
Lucknow Zonal Office
GAIL (India) Limited
3rd Floor, Fortuna Tower
10, Rana Pratap Marg, Lucknow
Uttar Pradesh – 226001
91-522-4159666, 4005080, 2204065 (Reception) 91- 4159600 (Direct)
91- 4159600 (Direct)
ZOIC: Mr R K Das, Chief General Manager
E-mail ID: RKD02215[at]gail[dot]co[dot]in
Contact Person: Mr Manish Saxena, Dy General Manager
E-mail ID: manish[dot]saxena[at]gail[dot]co[dot]in
Bhopal Zonal Office
GAIL (India)Limited
8-Mapple High Street (2nd Floor),
Opp. Aashima Mall,
Hoshangabad Road,
Bhopal(MP)- 462026
07556620111, (Reception/EPBAX NOS) 07556620100, (Reception Direct No.)
ZOIC: Mr. H K Garg, Chief General Manager
E-mail ID: hkgarg[at]gail[dot]co[dot]in
Contact Person: Mr P N Rao, Dy General Manager
E-mail ID: pn[dot]rao[at]gail[dot]co[dot]in
AddressTelephone No. and E-mail
Hyderabad Zonal Office
GAIL (India) Limited
Module No.105, NSIC Business Park
Kamala Nagar,
Dr. A.S. Rao Nagar
ECIL(P.O.),
Hyderabad – 500062
040-27149500
ZOIC: Mr Sanjay Shende, Zonal Chief General Manager
E-mail ID:  sshende[at]gail[dot]co[dot]in
Contact Person: Mr Sharad Kr Tripathi, Dy General Manager
E-mail ID: sharad[dot]tripathi[at]gail[dot]co[dot]in
Bengaluru Zonal Office
GAIL (India) Limited
“Swan”, 2nd Floor,
#323, Kodigehalli Main Road,
Sahakar Nagar, Bengaluru – 560092
080-46244111
ZOIC: Mr P Murugesan, Executive Director
E-mail ID: pmurugesan[at]gail[dot]co[dot]in
Contact Person: Mr Anupam Gangopadhyay, Dy General Manager
aganguly[at]gail[dot]co[dot]in
Chennai Zonal Office
GAIL (India) Limited
Chennai Zonal Office
5th Floor, “Kuppu Arcade”
New No.4 (Old No.60),
Venkatanarayana Road, T Nagar,
Chennai -600017.
044-24332175 to 81 Extn:9/415
ZOIC: Mr M K Biswas, Chief General Manager
E-mail ID:  mkbiswas[at]gail[dot]co[dot]in
Contact Person: Mr Ashok K, Dy General Manager
E-mail ID: ashok[dot]k[at]gail[dot]co[dot]in
AddressTelephone No. and E-mail
Bhubaneswar Zonal Office
GAIL (India) Limited
Bhubaneswar Zonal Office,
Unit DCB016, Upper Ground Floor,
DLF Cybercity, IDCO InfoPark,
Chandaka Industrial Estate, Patia,
Bhubaneswar, Odisha – 751024.
Phone. 0674-2975073

ZOIC: Mr Pankaj Bhagat, General Manager
E-mail ID: p[dot]bhagat[at]gail[dot]co[dot]in
Contact Person: Mr Anand Mohan Jagati, Dy General Manager
E-mail ID: a[dot]jagati[at]gail[dot]co[dot]in
Kolkata Zonal Office
GAIL (India) Limited
Marble Arch Building,
6th Floor, Unit No.-602,
236B, A.J.C Bose Road
Kolkata-700020 .
033-2290 8665 / 68 / 69
ZOIC: Mr. S Roymondal, General Manager (Construction & Marketing)
E-mail ID: S[dot]Roymondal[at]gail[dot]co[dot]in
Contact Person: Mr Sandeep Mondal, Dy General Manager
E-mail ID: sandeep[dot]mondal[at]gail[dot]co[dot]in
Guwahati Zonal Office
GAIL (India) Limited,
2nd floor, Advika,
87 MG Road, Panbazar,
Guwahati , Assam – 781001.
Phone: 0361-2602282, Extn.: 109
ZOIC: Mr R Choudhury, Chief General Manager
E-mail ID: rchoudhury[at]gail[dot]co[dot]in
Contact Person: Mr. H Nanda, Chief Manager
E-mail ID: h[dot]nanda[at]gail[dot]co[dot]in

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