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.
GAIL Gas has been authorized by Petroleum and Natural Gas Regulatory Board (PNGRB) for implementing City Gas Distribution Projects in Dewas( Madhya Pradesh), Kota ( Rajasthan), Sonipat ( Haryana), Meerut ( Uttar Pradesh), Vadodara( Gujarat) and Taj Trapezium Zone ( Uttar Pradesh).
In addition, GAIL Gas has formed joint ventures to pursue CGD opportunities in Kerala, Andhra Paredeh, Vadodara( Gujarat) and is in the process of forming joint ventures in Karnataka, Rajasthan, West Bengal etc.