Centre may split GAIL pipeline biz

New Delhi: The Union Cabinet may by next month consider a proposal to hive off state-run gas utility GAIL (India) Ltd's pipeline business into a separate entity but its sale to a strategic investor may not happen before 2022, sources privy to the development said.

GAIL is India's biggest natural gas marketing and trading firm and owns more than two-thirds of the country's 16,234-km pipeline network, giving it a stranglehold on the market.

Users of natural gas have often complained about not getting access to GAIL's 11,551-km pipeline network to transport their fuel. Sources said to resolve the conflict arising out of the same entity owning the two jobs, bifurcating GAIL is being considered.

A proposal is likely to be moved before the Union Cabinet for transferring the pipeline business into a 100 per cent subsidiary, they said adding the proposal may be considered and approved by the Cabinet this month or latest by November.

After the Cabinet approval, a consultant will be appointed to transfer the pipeline business into a separate subsidiary.