New Delhi, Jan 4: The government is reportedly mulling a proposal to the split the Gas Authority of India Limited (GAIL) into two separate entities. Reports said that the government might separate marketing operations and make it a full-fledged company. The possibility of a split is discussed as the government is miffed with GAIL’s performance in building a pipeline network. Also, there is a conflict of interest as the company is both the infrastructure provider and carrier.
This is not the first time that possibility of a split is being explored. The Atal Bihari Vajpayee government also planned this, but didn’t go ahead with it.The core business of GAIL is the transmission of natural gas and its transmission.
The company, however, has diversified into fields of petrochemicals and renewable energy. The company earned 70 per cent of its revenue last year from marketing operations. It is rumoured that the government might acquire Hindustan Petroleum Corporation to make both the entities stronger.
A news report said that Bharat Petroleum and Indian Oil may acquire GAIL and have pitched to take it over. Before deciding on this, the government may want to separate the two operations. Reports said nothing has been official as yet.