Question : Splitting of GAIL

(a) whether a proposal to split Gas Authority of India Limited (GAIL), a public sector enterprises is under active consideration of the Government and if so, the details thereof;
(b) whether the Government has held consultation with all the stakeholders in this regard;
(c) if so, the details and outcome thereof;and
(d) whether the proposed split will add transparency in the operations and if so, the details thereof?

Answer given by the minister

MINISTER OF PETROLEUM AND NATURAL GAS (SHRI DHARMENDRA PRADHAN)
(a) to (d) In year 1984, GAIL was established for transportation, processing and marketing of natural gas and for establishing and managing gas pipelines and related installations. At present, GAIL has developed about 11,000 km long gas pipeline network and is also developing about 4,200 km long pipelines projects in the country.
In the year 2006, the Government issued the Policy for Development of Natural Gas Pipelines and City or Local Natural Gas Distribution Networks. In terms of this policy and the provisions of the Petroleum & Natural Gas Regulatory Board (PNGRB) Act, 2006, all authorized entities including GAIL have to provide mandatory open access to its gas pipeline infrastructure on common carrier principle at non-discriminatory basis, at transportation rates determined by PNGRB. In the long run and with the maturing of gas markets, it is envisaged in the policy that the authorized entities will have transportation of natural gas as their sole business activity and will not have any business interest in the gas marketing or city or local gas distribution networks

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