Gail India Gets PNGRB approval to transfer city gas assets to subsidiary

Mumbai: The Petroleum and Natural Gas Regulatory Board (PNGRB) has allowed Gail India to transfer six city gas distribution (CGD) areas to Gail Gas, paving the way for the listing of the subsidiary, executives aware of the development said.

The transfer will help boost value for Gail Gas, the wholly owned CGD subsidiary of Gail India that plans to raise ₹3,000 crore through an initial public offering (IPO) and list its shares by the end of this financial year. Gail India will not directly own the CGD assets after this transaction.

"The PNGRB has allowed the transfer of six CGD areas of Gail-Varanasi, Patna, Khordha (Bhubaneswar), Ranchi, Cuttack and East Singhbhum (Jamshedpur)-to Gail Gas, paving the way for the IPO," said an executive.


After this restructuring, state-run Gail India is expected to dilute a minority stake in the subsidiary through the proposed IPO.

Gail India and Gail Gas did not reply to emails seeking comment until press time Wednesday.

Gail Gas, established in 2008, is authorised by PNGRB to develop CGD networks in 16 geographical areas. The company currently has operations in Madhya Pradesh, Haryana, Uttar Pradesh, Karnataka, Uttarakhand, Odisha, Jharkhand and Chhattisgarh.