Explained: Why GAIL is dropping plans to hive of its pipeline business

Written by Karunjit Singh
, Edited by Explained Desk | New Delhi |

Updated: June 12, 2021 1:19:15 pm

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.

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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…

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