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Introduction |
GAIL Gas Limited, a wholly owned subsidiary of GAIL (India) Limited, was incorporated on May 27, 2008 for the smooth implementation of City Gas Distribution (CGD) projects. GAIL Gas Limited is a limited company under the Companies Act, 1956.
The subsidiary will be implementing CGD projects in the various cities of the country. The new company will facilitate re-investing returns from operational CGD projects into new projects thus reducing the need for fresh equity infusions by GAIL. It is expected that the subsidiary company would be more easily listed in future to provide further upside as well as liquidity to GAIL.
Based on the success of IGL and MGL, the two major Joint Venture Companies (JVCs) of GAIL (India) Limited in CGD projects implementation/ business, GAIL has further set up six more JVCs for CGD projects in various cities. This has induced other entities to come into CGD projects and thus a competitive era in this field has been initiated.
In the competitive environment, a sincere and dedicated approach, energy and focus have been taken to maintain GAIL's position in CGD projects. This has necessitated the requirement of a new establishment of GAIL dedicated to CGD projects.
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