About
GAIL (India) Ltd
GAIL (India) Limited is the largest state-owned natural gas processing and distribution Company in India. The Company has a diversified business portfolio and has interests in the sourcing and trading of natural gas, production of LPG, Liquid hydrocarbons and petrochemicals, transmission of natural gas and LPG through pipelines, etc. GAIL has also participating interest in India and overseas in Oil and Gas Blocks. The Government of India holds 51.52% in the Paid-Up Equity Capital of the Company as on 31st March, 2023.
GAIL (India) Ltd was incorporated on August 16, 1984 as a Public Limited Company with the name 'Gas Authority of India Ltd.' At the time of incorporation, all of the shares were held by the Government of India. Initially, the Company started as a gas transmission company. They grew organically over the years by building a large network of natural gas trunk pipelines covering a length of 7850 km.
The Company was established to lay an onshore pipeline from Hazira on the West Coast to supply natural gas to facilities in the States of Gujarat, Rajasthan, Madhya Pradesh and Uttar Pradesh. In the year 1986, they started the construction of the pipeline and they completed in the year 1988.
In 1991, the company constructed their first LPG Plant at Vijiapur. In 1992, they took over certain of the Regional Pipelines from ONGC and completed their second LPG plant at Vijiapur. Also, in the year 1993, they completed a third LPG plant at Vaghodia. In the year 1995, the Government sold 28.5 million equity shares, representing 3.4% of the company's equity capital, to domestic and qualified foreign investors. In May 1995, they formed Mahanagar Gas Ltd as a joint venture with British Gas and the Government of Maharashtra and own 49.75% of the equity shares.
In 1998, the company completed LPG plants at Usar and Lakwa. In April 1998, they formed PLL, a public limited company under the Companies Act, in which they hold a 12.5% equity interest. In July 1998, they completed upgradation of the pipeline, compressors and various terminals along the HVJ pipeline. In December 1998, the company formed Indraprastha Gas Ltd as a joint venture with BPCL and own 22.5% of the equity shares in Indraprastha.
In February 1999, the Government sold approximately 30.6 million shares, representing a further 3.6% of the equity capital to various domestic and foreign institutional investors in a private placement. In March 1999, the Government sold approximately 5% of the equity capital to each of IOC and ONGC, representing a total of 81.7 million shares.
In March 1999, the company commissioned their petrochemical complex at Pata. Also, they purchased from the Government 2.5% of their equity interest in ONGC, representing a total of 34.3 million shares, for Rs.5.6 billion. In October 1999, the company entered into a Memorandum of Understanding with ONGC to purchase natural gas from existing discoveries, which are under production. In March 2000, the company commissioned additional LPG plants at Pata. Also, they commissioned additional LPG plants at Gandhar in March 2001. In June 2001, they invested in Gujarat State Energy Generation Ltd and own 12.85% of their equity shares.
In November 22, 2002, the name of the company was changed from Gas Authority of India Ltd to GAIL (India) Ltd. In June 2003, the company completed the LPG pipeline between Vizag and Secunderabad. In September 2003, the company formed Bhagyanagar Gas Ltd, a joint venture with HPCL, and own 25% of the equity shares.
During the year 2004-05, the company established a wholly owned subsidiary company, namely GAIL Global Singapore Pte Ltd. They incorporated Tripura Natural GasCo Ltd and UP Central Gas Ltd as the joint venture for city gas project in Tripura and Kanpur. The company acquired 15% equity stake in NatGas, Egypt. They signed an agreement for the acquisition of 9% equity stake in China Gas Holdings Ltd, a joint venture for city gas projects in 42 cities of China. The company commissioned Vizag-Secunderabad LPG Pipeline during the year.
During the year 2006-07, the company promoted a subsidiary named Brahmaputra Cracker and Polymer Ltd, for producing 280,000 MT per annum of petrochemical products at Lepetkata, Assam. They sourced their first spot cargo of LNG from Algeria and later sourced additional spot LNG through PLL, Dahej and Shell, Hazira. The company entered into MoU with Arrow Energy of Australia and Infrastructure Group of Sweden for cooperation in pursuing Coal Bed Methane opportunities in India, Australia and third countries.
During the year 2007-08, the company completed a major pipeline project from Dahej to Dabhol via Panvel to supply gas to RGPPL which started supplying much needed power to the state of Maharashtra. The company signed Gas Sales Agreement with Pragati Power for gas supply to Bawana Power Plant. Also, they executed Gas Supply Agreements with major suppliers like ONGC, PMT etc for augmentation of gas supplies. The company entered into Gas Transmission Agreement (GTA) with Reliance Gas Transportation Infrastructure Limited (RGTIL) for Transmission of natural gas from the Krishna-Godavari (KG) basin.
In order to strengthen the business activities in the area of Petrochemicals, the company signed an MoU with Reliance Industries Ltd for exploring opportunities for setting up a mega petrochemical complex outside India in one of the gas rich countries. Also, they signed an MoU with ONGCL to work jointly for transportation, distribution and marketing of natural gas from their new gas finds in KG basin and Mahanadi basin.
During the year, the company signed a Gas Cooperation Agreement with Government of Pondicherry envisaging setting up of a coordination group to study the demand potential of the Union Territory of Pondicherry for R-LNG/CNG/PNG. Also, they signed an MoU with ITERA Oil & Gas Company of Russia for cooperation in projects such as CNG, Gas based Petrochemicals and E&P.
During the year 2008-09, the company acquired one exploration block in Cauvery Onland as Operator in NELP-VII bidding round. They signed an MoU with IOCL for evaluating the potential of setting up of petrochemical complex in Barauni, Bihar. Also, they signed an MoU with IFFCO to evaluate the potential of setting up of gas based power plant & other industries including chemicals, fertilizers, CNG & PNG in India. They laid the foundation stone of the sixth gas cracker furnace at Pata Plant. Also, they won rights for rolling out city gas distribution projects in Meerut. Sonepat, Dewas and Kota.
During the year, the company completed connectivity to Pune city gas and consumers of Usar (Mumbai) region. Further, they provided connectivity to supply piped natural gas to City Gate stations at Noida, Greater Noida, Gurgaon and Faridabad. They signed Term Sheets for supply of natural gas to Barauni Plant of Urvarak Videsh Ltd and Bhatinda, Panipat and Nangal Plants of National Fertilizers Ltd. In May 27, 2008, the company incorporated a wholly owned subsidiary, GAIL Gas Ltd for implementation of the City Gas Distribution projects.
During the year 2009-10, the company completed commissioning of various pipelines having a total length of about 700 km, including Dadri - Bawana pipeline for supplying gas to Pragati Power Corporation Ltd and Chainsa- Sultanpur Pipeline, which will facilitate supplying about 34 MMSCMD gas to around 65 customers. In March 2010, the company commissioned a wind energy project of 4.5 MW capacity at Sinoi (Anjar), District Bhuj in Gujarat, at a cost of Rs 27.7 crore.
During the year 2010-11, the company completed various pipelines having length of about 761 kilometers which includes Vijaipur-Dadri Pipeline (498 km), Sultanpur-Neemrana Pipeline (175 km) and Focus Energy Pipeline (88 km). It commissioned a Wind Energy Power Project of 4.5 MW capacity at Sinoi in Kutch District of Gujarat costing Rs. 27.7 crores. As of March 31, 2011, the Company had seven Liquefied Petroleum Gas (LPG) plants.
In October 2010, the Company commenced construction of the Karanpur - Moradabad - Kashipur - Rudrapur / Pant Nagar Natural Gas Pipeline at Kashipur.
In September 2011, the Company incorporated a wholly owned subsidiary GAIL Global (USA) Inc in USA which acquired working interest to the extent of 20% in Eagle Ford assets (Shale assets) held by Carrizo Oil and Gas Inc. in USA.
In 2012, the company's subsidiary GAIL Gas signed an agreement to set up an Rs. 5,000 crores liquefied natural gas (LNG) import facility around Kakinada or Vishakapatnam in Andhra Pradesh. The company signs agreement with ITPL International Technology Park Ltd for supplying natural gas, during the year under review. GAIL Gas Limited, through its joint venture APGDC, inks pact with GDF Suez LNG UK for setting up FSRU in Andhra Pradesh. GAIL India signs a Gas Sales & Purchase Agreement (GSPA) to import gas from Turkmenistan to be transported through the TAPI pipeline during the year under review. The company also completed joint venture formalities with Vadodara Municipal Corporation (VMC). The company also signs various collaboration agreements with ONGC during the year under review. In 2013, State Govt approves GAIL-Vadodara Municipal Corporation (VMC) Joint Venture for piped gas connections in Vadodara. The company's consortium, Deep Energy secures exploration blocks. The company also commissions 5 mn tonne LNG terminal at Dabhol. During the year, the company also entered in Solar Power generation by commissioning 5 MW Solar Power Plant under Jawaharlal Nehru National Solar Mission. The company during the year signs Gas Cooperation Agreement with Government of Bihar. The company and Shipping Corporation join hands for LNG Shipping. In 2014, the company secured Gas supply in US for export of 2.3 MMTPA LNG to India from Dominion Cove Point LNG Liquefaction Terminal. A MoU with RCF, CIL & FCIL executed for implementing Coal Gasification project at Talcher comprising of JV-I (coal gasification) and JV-II (Urea & Ammonia, Ammonium Nitrate, captive power plant and integrated utility). The company was declared the top Indian company in the Gas-Processing, Distribution and Marketing' Sector for the Dun & Bradstreet Corporate Awards 2014 during the year under review. The company was also adjudged Best Performing Company' (Maharatna category) at the India Today PSU Awards 2014. APGDC, GDF SUEZ, Shell and the company signed MOUs for the floating LNG terminal in Kakinada, Andhra Pradesh.
On 29 January 2015, GAIL (India) clarified that its LPG recovery plant at Lakwa, Assam would be converted to supply feedstock for the petrochemical unit of Brahmaputra Cracker and Polymer Limited (BCPL). GAIL stated that the plant was being converted to supply feedstock to the petrochemical unit and would continue to function under BCPL.
On 13 May 2015, Indian Oil Corporation (IOCL) and GAIL (India) signed MoU with Dhamra LNG Terminal Private Limited (DLTPL). As per the terms of MoU, IOCL and GAIL would reserve regasification capacity in the terminal to supply regasified LNG in the emerging gas markets in the eastern part of the country.
In a significant step towards dispensing of compressed natural gas (CNG) along Delhi-Jaipur Highway corridor and distribution of natural gas to various industrial clusters in Rajasthan, Rajasthan State Gas Limited (RSGL) signed Heads of Agreement (HoA) with GAIL (India) on 28 May 2015 to procure natural gas from GAIL (India).
On 1 January 2016, GAIL (India) announced that it had entered into a binding Gas Sale and Purchase Agreement (GSPA) with Petronet LNG Limited for supply of an additional 0.30 MMTPA of RLNG with effect from 1 January 2016. GAIL and Petronet LNG Limited also entered into an agreement to adjust some aspects of their existing long term GSPA of 4.5 MMTPA.
On 27 May 2016, GAIL (India) Limited started initial drilling process at its second Exploratory Well as operator in the NELP-IX Block CB-ONN-2010/11 in Cambay Basin in Gujarat. The first well was spud in this block on 27 March 2016.
On 22 June 2016, GAIL (India) Limited announced that it has placed orders worth Rs. 550 crores for purchase of 341 km of line pipes for the Phulpur Haldia/Dhamra natural gas pipeline in Eastern India.
On 22 August 2016, GAIL (India) Limited and Silicon Valley-based Bloom Energy announced a new partnership to transform India's energy future through the use of innovative technology and signed a Memorandum of Understanding (MoU) to deploy revolutionary natural gas-based fuel cell technology to generate electricity.
On 20 September 2016, GAIL (India) announced that it has successfully started its first UNIPOL PE Process line at its petrochemical plant at Pata, UP with the capacity to produce 400,000 tons of polyethylene (PE) per year.
On 10 October 2016, GAIL announced that it had initiated a major step towards the construction of the Jagadishpur-Haldia-Bokaro-Dhamra natural gas pipeline (JHBDPL) in Eastern India by approving placement of orders for pipeline laying work of 345 km from Phulpur to Dobhi under phase-IB at an estimated cost of Rs. 306 crores under two sections.
On 24 October 2016, the foundation stone of was laid for GAIL (India)'s City Gas Distribution (CGD) project in Varanasi, Uttar Pradesh. The project is part of GAIL (India)'s Jagdishpur - Haldia and Bokaro - Dhamra Pipeline project (JHBDPL), popularly known as 'Urja Ganga'.
The Board of Directors of GAIL (India) at its meeting held on 25 January 2017 recommended issuance of one bonus share for every three equity shares held of Rs. 10 each fully paid up, subject to shareholders approval.
On 14 February 2017, GAIL (India) awarded contract for pipeline laying work for another 105 Km from Perole-Kodalamuguru- Mangaluru section of the 440 km Kochi - Koottanad - Mangaluru Natural Gas Pipeline Project. On 1 May 2017, GAIL (India) awarded contracts for pipeline laying work for another 131 Km section from Areacode (Malappuram) to Kurumathoor (Kannur) Section of Kochi - Koottanad - Mangaluru Pipeline Project.
On 18 March 2017, GAIL (India) announced the launch of the implementation of its City Gas Distribution (CGD) project in Bhubaneswar and Cuttack in Odisha. On 20 October 2017, GAIL (India) announced the commencement of supply of natural gas to the residents of Bhubaneswar in Odisha
On 7 December 2017, GAIL (India) awarded contract for laying 520 kms pipeline connectivity from Dobhi (in Bihar) to Durgapur (in West Bengal) including 120 kms line to Jamshedpur (in Jharkhand). On 29 December 2017, GAIL (India) placed line pipe orders for approx. 400 Km for pipeline connectivity from Dobhi (in Bihar) to Durgapur (in West Bengal).
On 30 December 2017, GAIL (India) announced that it had commissioned India's second largest rooftop solar PV power plant at its petrochemical complex at Pata, Uttar Pradesh. The electricity generated from the power plant is targeted for captive use for the gas based petrochemicals plant.
The Government of India disinvested 1,30,26,898 shares in June 2018 through CPSE Bharat 22 ETF, which resulted the shareholding of . 1,19,55,21,226 equity shares, representing 53.01% of paid-up share capital of GAIL after divestment.
In 2019, GAIL Board approved revival of existing LPG plant project at Usar, Maharashtra and converting the same into 500 KTA Polypropylene complex. Supply of Natural Gas commenced in Patna City by commissioning of 2 CNG station and PNG which was inaugurated by Hon'ble Prime Minister of India. Further, supply of gas to CGD Cuttack & Bhubaneswar were started from new LCNG (Liquefied CNG) satellite terminal commissioned in Bhubaneswar City.
The Government of India disinvested 1,16,75,668 shares in July, 2018 & 1,98,43,410 shares in February, 2019 through CPSE Bharat 22 ETF. and after disinvestment, the President of India's shareholding stood at 1,17,70,29,046 equity shares, representing 52.19% of paid-up share capital of GAIL.
In 2019-20, the Company made significant progress in the ongoing 2,655 km of Jagdishpur Haldia and Bokaro Dhamra Pipeline (JHBDPL) Project popularly known as Pradhan Mantri Urja Ganga Pipeline Project. Phase-1 (750 km) of this prestigious project from Phulpur to Varanasi, Gaya, Patna and Barauni has already been commissioned. It commissioned 594 km of Natural Gas Pipeline in FY 2019-20 which consist of 165 km Gorakhpur spurline section of JHPDPL Phase-I alongwith 350 km section of Kochi-Koottanad-Bangalore-Mangalore Pipeline Phase-II and 07 customer connectivity projects. It made progress in pipeline laying activities in the 6 states of Bihar, Uttar Pradesh, Jharkhand, Odisha, West Bengal and Assam. Natural gas supply for CNG & PNG has also commenced in Ranchi & Jamshedpur City. It completed construction of 30 CNG stations in FY 2019-20, out of which 14 are already commissioned & 16 CNG stations are mechanically completed.
The Government of India disinvested 1,96,10,227 shares in October 2019 through CPSE Bharat 22 ETF. After disinvestment, the President of India's shareholding stood 233,44,49,987 equity shares, representing 51.76% of paid-up share capital of the Company.
In 2020, the Company divested acquired shares in Konkan LNG Limited (KLL) and subsequently, KLL became subsidiary of the Company w.e.f. 27 March, 2020, with GAIL's equity shareholding of 69.06% along with NTPC and others.
During FY 2019-20, Company commenced gas supply to Ramagundam Fertilizers & Chemicals Limited (RFCL), w.e.f. October, 2019 for pre-commissioning of the plant.
In 2020-21, it acquired an equity stake of 5% in Indian Gas Exchange Ltd. (IGX), to trade natural gas at designated physical hubs in India.
During the FY 2021-22, Jagdishpur Haldia and Bokaro Dhamra pipeline (JHBDPL), a total of 1,521 km out of 2,655 km pipeline length
was commissioned while achieving natural gas supply to all 4 major anchor Fertilizers plants, namely M/s Matix Fertilizers, Durgapur and 03 units of M/s Hindustan Urvarak & Rasayan Limited (HURL) at Gorakhpur, Sindri, & Barauni. Capacity augmentation of Vijaipur
to Auraiya section of integrated Hazira-Vijaipur-Jagdishpur Pipeline was completed. Two new natural gas Tie-in Pipelines have
been authorized by PNGRB to your Company for laying viz. (i) from Jaya Field at Jambusar Gujarat to South Gujarat Network (~18 km) and (ii) from LNG Terminal at Jafrabad to Integrated HVJ Network (~170 km). Jamnagar-Loni LPG Pipeline from 2.5 MMTPA to 3.25 MMTPA got completed during the year. Under the Petrochemicals business vertical, 500 KTA Propane Dehydrogenation and Polypropylene (PDH-PP) Project at Usar, Maharashtra, and another 60 KTA Polypropylene (PP) project at Pata, Uttar Pradesh is being set up.
During the FY 2021-22, Company jointly with ONGC Videsh Singapore Pte. Ltd., IOCL Singapore Pte. Ltd., Oil India International Pte. Ltd., and Engineers India Ltd. has formed Bharat Energy Office LLC (BEO), Moscow, Russia for exploring business opportunities in Russia. GAIL also acquired 26% stake in ONGC Tripura Power Company Ltd (OTPC).
During the FY 2022-23, Company acquired 26% stake in M/s LNG Japonica Shipping Corporation Limited from M/s Mitsui O.S.K. Lines, Ltd., Tokyo, Japan. Thereafter, the Company acquired shares of JBF Petrochemicals Ltd. and JBF Petrochemicals became a wholly-owned subsidiary of Company with effect from 01.06.2023. In September, 2022, the Company issued and allotted Bonus Shares to the Shareholders in ratio of One Equity Share of Rs 10 each for every Two Equity Shares of Rs 10 each held. i.e., 1:2.
During FY 2022-23, 1074 km of Natural Gas Pipeline was commissioned. The Company expanded the reach of Pradhan Mantri Urja Ganga Pipeline Project, also known as Jagdishpur Haldia and Bokaro Dhamra Pipeline (JHBDPL) with the commissioning of 2,096 km out of 2,655 km total pipeline length. During FY 2022-23, the major addition to JHBDPL network was made through commissioning of Bokaro-Angul Mainline. It commissioned Sultanpur-Jhajjar-Hisar pipeline (135 km) on 31.03.2023 and commissioned Chainsa-Jhajjar-Hissar (CJHPL) network. Barauni-Guwahati Pipeline in Bihar Section was commissioned on 31 Mar' 23. Kochi to Mangalore Pipeline (KMPL-450 km) passing through Kerala & Karnataka was commissioned. Kootanad to Bengalore Pipeline was commissioned. Phase-2 from Vijaipur to Auraiya-Phulpur Pipeline was commissioned in March 2022. Sultanpur-Jhajjar-Hisar Pipeline was commissioned on 31.03.2023.
GAIL (India) Ltd
Company History
GAIL (India) Limited is the largest state-owned natural gas processing and distribution Company in India. The Company has a diversified business portfolio and has interests in the sourcing and trading of natural gas, production of LPG, Liquid hydrocarbons and petrochemicals, transmission of natural gas and LPG through pipelines, etc. GAIL has also participating interest in India and overseas in Oil and Gas Blocks. The Government of India holds 51.52% in the Paid-Up Equity Capital of the Company as on 31st March, 2023.
GAIL (India) Ltd was incorporated on August 16, 1984 as a Public Limited Company with the name 'Gas Authority of India Ltd.' At the time of incorporation, all of the shares were held by the Government of India. Initially, the Company started as a gas transmission company. They grew organically over the years by building a large network of natural gas trunk pipelines covering a length of 7850 km.
The Company was established to lay an onshore pipeline from Hazira on the West Coast to supply natural gas to facilities in the States of Gujarat, Rajasthan, Madhya Pradesh and Uttar Pradesh. In the year 1986, they started the construction of the pipeline and they completed in the year 1988.
In 1991, the company constructed their first LPG Plant at Vijiapur. In 1992, they took over certain of the Regional Pipelines from ONGC and completed their second LPG plant at Vijiapur. Also, in the year 1993, they completed a third LPG plant at Vaghodia. In the year 1995, the Government sold 28.5 million equity shares, representing 3.4% of the company's equity capital, to domestic and qualified foreign investors. In May 1995, they formed Mahanagar Gas Ltd as a joint venture with British Gas and the Government of Maharashtra and own 49.75% of the equity shares.
In 1998, the company completed LPG plants at Usar and Lakwa. In April 1998, they formed PLL, a public limited company under the Companies Act, in which they hold a 12.5% equity interest. In July 1998, they completed upgradation of the pipeline, compressors and various terminals along the HVJ pipeline. In December 1998, the company formed Indraprastha Gas Ltd as a joint venture with BPCL and own 22.5% of the equity shares in Indraprastha.
In February 1999, the Government sold approximately 30.6 million shares, representing a further 3.6% of the equity capital to various domestic and foreign institutional investors in a private placement. In March 1999, the Government sold approximately 5% of the equity capital to each of IOC and ONGC, representing a total of 81.7 million shares.
In March 1999, the company commissioned their petrochemical complex at Pata. Also, they purchased from the Government 2.5% of their equity interest in ONGC, representing a total of 34.3 million shares, for Rs.5.6 billion. In October 1999, the company entered into a Memorandum of Understanding with ONGC to purchase natural gas from existing discoveries, which are under production. In March 2000, the company commissioned additional LPG plants at Pata. Also, they commissioned additional LPG plants at Gandhar in March 2001. In June 2001, they invested in Gujarat State Energy Generation Ltd and own 12.85% of their equity shares.
In November 22, 2002, the name of the company was changed from Gas Authority of India Ltd to GAIL (India) Ltd. In June 2003, the company completed the LPG pipeline between Vizag and Secunderabad. In September 2003, the company formed Bhagyanagar Gas Ltd, a joint venture with HPCL, and own 25% of the equity shares.
During the year 2004-05, the company established a wholly owned subsidiary company, namely GAIL Global Singapore Pte Ltd. They incorporated Tripura Natural GasCo Ltd and UP Central Gas Ltd as the joint venture for city gas project in Tripura and Kanpur. The company acquired 15% equity stake in NatGas, Egypt. They signed an agreement for the acquisition of 9% equity stake in China Gas Holdings Ltd, a joint venture for city gas projects in 42 cities of China. The company commissioned Vizag-Secunderabad LPG Pipeline during the year.
During the year 2006-07, the company promoted a subsidiary named Brahmaputra Cracker and Polymer Ltd, for producing 280,000 MT per annum of petrochemical products at Lepetkata, Assam. They sourced their first spot cargo of LNG from Algeria and later sourced additional spot LNG through PLL, Dahej and Shell, Hazira. The company entered into MoU with Arrow Energy of Australia and Infrastructure Group of Sweden for cooperation in pursuing Coal Bed Methane opportunities in India, Australia and third countries.
During the year 2007-08, the company completed a major pipeline project from Dahej to Dabhol via Panvel to supply gas to RGPPL which started supplying much needed power to the state of Maharashtra. The company signed Gas Sales Agreement with Pragati Power for gas supply to Bawana Power Plant. Also, they executed Gas Supply Agreements with major suppliers like ONGC, PMT etc for augmentation of gas supplies. The company entered into Gas Transmission Agreement (GTA) with Reliance Gas Transportation Infrastructure Limited (RGTIL) for Transmission of natural gas from the Krishna-Godavari (KG) basin.
In order to strengthen the business activities in the area of Petrochemicals, the company signed an MoU with Reliance Industries Ltd for exploring opportunities for setting up a mega petrochemical complex outside India in one of the gas rich countries. Also, they signed an MoU with ONGCL to work jointly for transportation, distribution and marketing of natural gas from their new gas finds in KG basin and Mahanadi basin.
During the year, the company signed a Gas Cooperation Agreement with Government of Pondicherry envisaging setting up of a coordination group to study the demand potential of the Union Territory of Pondicherry for R-LNG/CNG/PNG. Also, they signed an MoU with ITERA Oil & Gas Company of Russia for cooperation in projects such as CNG, Gas based Petrochemicals and E&P.
During the year 2008-09, the company acquired one exploration block in Cauvery Onland as Operator in NELP-VII bidding round. They signed an MoU with IOCL for evaluating the potential of setting up of petrochemical complex in Barauni, Bihar. Also, they signed an MoU with IFFCO to evaluate the potential of setting up of gas based power plant & other industries including chemicals, fertilizers, CNG & PNG in India. They laid the foundation stone of the sixth gas cracker furnace at Pata Plant. Also, they won rights for rolling out city gas distribution projects in Meerut. Sonepat, Dewas and Kota.
During the year, the company completed connectivity to Pune city gas and consumers of Usar (Mumbai) region. Further, they provided connectivity to supply piped natural gas to City Gate stations at Noida, Greater Noida, Gurgaon and Faridabad. They signed Term Sheets for supply of natural gas to Barauni Plant of Urvarak Videsh Ltd and Bhatinda, Panipat and Nangal Plants of National Fertilizers Ltd. In May 27, 2008, the company incorporated a wholly owned subsidiary, GAIL Gas Ltd for implementation of the City Gas Distribution projects.
During the year 2009-10, the company completed commissioning of various pipelines having a total length of about 700 km, including Dadri - Bawana pipeline for supplying gas to Pragati Power Corporation Ltd and Chainsa- Sultanpur Pipeline, which will facilitate supplying about 34 MMSCMD gas to around 65 customers. In March 2010, the company commissioned a wind energy project of 4.5 MW capacity at Sinoi (Anjar), District Bhuj in Gujarat, at a cost of Rs 27.7 crore.
During the year 2010-11, the company completed various pipelines having length of about 761 kilometers which includes Vijaipur-Dadri Pipeline (498 km), Sultanpur-Neemrana Pipeline (175 km) and Focus Energy Pipeline (88 km). It commissioned a Wind Energy Power Project of 4.5 MW capacity at Sinoi in Kutch District of Gujarat costing Rs. 27.7 crores. As of March 31, 2011, the Company had seven Liquefied Petroleum Gas (LPG) plants.
In October 2010, the Company commenced construction of the Karanpur - Moradabad - Kashipur - Rudrapur / Pant Nagar Natural Gas Pipeline at Kashipur.
In September 2011, the Company incorporated a wholly owned subsidiary GAIL Global (USA) Inc in USA which acquired working interest to the extent of 20% in Eagle Ford assets (Shale assets) held by Carrizo Oil and Gas Inc. in USA.
In 2012, the company's subsidiary GAIL Gas signed an agreement to set up an Rs. 5,000 crores liquefied natural gas (LNG) import facility around Kakinada or Vishakapatnam in Andhra Pradesh. The company signs agreement with ITPL International Technology Park Ltd for supplying natural gas, during the year under review. GAIL Gas Limited, through its joint venture APGDC, inks pact with GDF Suez LNG UK for setting up FSRU in Andhra Pradesh. GAIL India signs a Gas Sales & Purchase Agreement (GSPA) to import gas from Turkmenistan to be transported through the TAPI pipeline during the year under review. The company also completed joint venture formalities with Vadodara Municipal Corporation (VMC). The company also signs various collaboration agreements with ONGC during the year under review. In 2013, State Govt approves GAIL-Vadodara Municipal Corporation (VMC) Joint Venture for piped gas connections in Vadodara. The company's consortium, Deep Energy secures exploration blocks. The company also commissions 5 mn tonne LNG terminal at Dabhol. During the year, the company also entered in Solar Power generation by commissioning 5 MW Solar Power Plant under Jawaharlal Nehru National Solar Mission. The company during the year signs Gas Cooperation Agreement with Government of Bihar. The company and Shipping Corporation join hands for LNG Shipping. In 2014, the company secured Gas supply in US for export of 2.3 MMTPA LNG to India from Dominion Cove Point LNG Liquefaction Terminal. A MoU with RCF, CIL & FCIL executed for implementing Coal Gasification project at Talcher comprising of JV-I (coal gasification) and JV-II (Urea & Ammonia, Ammonium Nitrate, captive power plant and integrated utility). The company was declared the top Indian company in the Gas-Processing, Distribution and Marketing' Sector for the Dun & Bradstreet Corporate Awards 2014 during the year under review. The company was also adjudged Best Performing Company' (Maharatna category) at the India Today PSU Awards 2014. APGDC, GDF SUEZ, Shell and the company signed MOUs for the floating LNG terminal in Kakinada, Andhra Pradesh.
On 29 January 2015, GAIL (India) clarified that its LPG recovery plant at Lakwa, Assam would be converted to supply feedstock for the petrochemical unit of Brahmaputra Cracker and Polymer Limited (BCPL). GAIL stated that the plant was being converted to supply feedstock to the petrochemical unit and would continue to function under BCPL.
On 13 May 2015, Indian Oil Corporation (IOCL) and GAIL (India) signed MoU with Dhamra LNG Terminal Private Limited (DLTPL). As per the terms of MoU, IOCL and GAIL would reserve regasification capacity in the terminal to supply regasified LNG in the emerging gas markets in the eastern part of the country.
In a significant step towards dispensing of compressed natural gas (CNG) along Delhi-Jaipur Highway corridor and distribution of natural gas to various industrial clusters in Rajasthan, Rajasthan State Gas Limited (RSGL) signed Heads of Agreement (HoA) with GAIL (India) on 28 May 2015 to procure natural gas from GAIL (India).
On 1 January 2016, GAIL (India) announced that it had entered into a binding Gas Sale and Purchase Agreement (GSPA) with Petronet LNG Limited for supply of an additional 0.30 MMTPA of RLNG with effect from 1 January 2016. GAIL and Petronet LNG Limited also entered into an agreement to adjust some aspects of their existing long term GSPA of 4.5 MMTPA.
On 27 May 2016, GAIL (India) Limited started initial drilling process at its second Exploratory Well as operator in the NELP-IX Block CB-ONN-2010/11 in Cambay Basin in Gujarat. The first well was spud in this block on 27 March 2016.
On 22 June 2016, GAIL (India) Limited announced that it has placed orders worth Rs. 550 crores for purchase of 341 km of line pipes for the Phulpur Haldia/Dhamra natural gas pipeline in Eastern India.
On 22 August 2016, GAIL (India) Limited and Silicon Valley-based Bloom Energy announced a new partnership to transform India's energy future through the use of innovative technology and signed a Memorandum of Understanding (MoU) to deploy revolutionary natural gas-based fuel cell technology to generate electricity.
On 20 September 2016, GAIL (India) announced that it has successfully started its first UNIPOL PE Process line at its petrochemical plant at Pata, UP with the capacity to produce 400,000 tons of polyethylene (PE) per year.
On 10 October 2016, GAIL announced that it had initiated a major step towards the construction of the Jagadishpur-Haldia-Bokaro-Dhamra natural gas pipeline (JHBDPL) in Eastern India by approving placement of orders for pipeline laying work of 345 km from Phulpur to Dobhi under phase-IB at an estimated cost of Rs. 306 crores under two sections.
On 24 October 2016, the foundation stone of was laid for GAIL (India)'s City Gas Distribution (CGD) project in Varanasi, Uttar Pradesh. The project is part of GAIL (India)'s Jagdishpur - Haldia and Bokaro - Dhamra Pipeline project (JHBDPL), popularly known as 'Urja Ganga'.
The Board of Directors of GAIL (India) at its meeting held on 25 January 2017 recommended issuance of one bonus share for every three equity shares held of Rs. 10 each fully paid up, subject to shareholders approval.
On 14 February 2017, GAIL (India) awarded contract for pipeline laying work for another 105 Km from Perole-Kodalamuguru- Mangaluru section of the 440 km Kochi - Koottanad - Mangaluru Natural Gas Pipeline Project. On 1 May 2017, GAIL (India) awarded contracts for pipeline laying work for another 131 Km section from Areacode (Malappuram) to Kurumathoor (Kannur) Section of Kochi - Koottanad - Mangaluru Pipeline Project.
On 18 March 2017, GAIL (India) announced the launch of the implementation of its City Gas Distribution (CGD) project in Bhubaneswar and Cuttack in Odisha. On 20 October 2017, GAIL (India) announced the commencement of supply of natural gas to the residents of Bhubaneswar in Odisha
On 7 December 2017, GAIL (India) awarded contract for laying 520 kms pipeline connectivity from Dobhi (in Bihar) to Durgapur (in West Bengal) including 120 kms line to Jamshedpur (in Jharkhand). On 29 December 2017, GAIL (India) placed line pipe orders for approx. 400 Km for pipeline connectivity from Dobhi (in Bihar) to Durgapur (in West Bengal).
On 30 December 2017, GAIL (India) announced that it had commissioned India's second largest rooftop solar PV power plant at its petrochemical complex at Pata, Uttar Pradesh. The electricity generated from the power plant is targeted for captive use for the gas based petrochemicals plant.
The Government of India disinvested 1,30,26,898 shares in June 2018 through CPSE Bharat 22 ETF, which resulted the shareholding of . 1,19,55,21,226 equity shares, representing 53.01% of paid-up share capital of GAIL after divestment.
In 2019, GAIL Board approved revival of existing LPG plant project at Usar, Maharashtra and converting the same into 500 KTA Polypropylene complex. Supply of Natural Gas commenced in Patna City by commissioning of 2 CNG station and PNG which was inaugurated by Hon'ble Prime Minister of India. Further, supply of gas to CGD Cuttack & Bhubaneswar were started from new LCNG (Liquefied CNG) satellite terminal commissioned in Bhubaneswar City.
The Government of India disinvested 1,16,75,668 shares in July, 2018 & 1,98,43,410 shares in February, 2019 through CPSE Bharat 22 ETF. and after disinvestment, the President of India's shareholding stood at 1,17,70,29,046 equity shares, representing 52.19% of paid-up share capital of GAIL.
In 2019-20, the Company made significant progress in the ongoing 2,655 km of Jagdishpur Haldia and Bokaro Dhamra Pipeline (JHBDPL) Project popularly known as Pradhan Mantri Urja Ganga Pipeline Project. Phase-1 (750 km) of this prestigious project from Phulpur to Varanasi, Gaya, Patna and Barauni has already been commissioned. It commissioned 594 km of Natural Gas Pipeline in FY 2019-20 which consist of 165 km Gorakhpur spurline section of JHPDPL Phase-I alongwith 350 km section of Kochi-Koottanad-Bangalore-Mangalore Pipeline Phase-II and 07 customer connectivity projects. It made progress in pipeline laying activities in the 6 states of Bihar, Uttar Pradesh, Jharkhand, Odisha, West Bengal and Assam. Natural gas supply for CNG & PNG has also commenced in Ranchi & Jamshedpur City. It completed construction of 30 CNG stations in FY 2019-20, out of which 14 are already commissioned & 16 CNG stations are mechanically completed.
The Government of India disinvested 1,96,10,227 shares in October 2019 through CPSE Bharat 22 ETF. After disinvestment, the President of India's shareholding stood 233,44,49,987 equity shares, representing 51.76% of paid-up share capital of the Company.
In 2020, the Company divested acquired shares in Konkan LNG Limited (KLL) and subsequently, KLL became subsidiary of the Company w.e.f. 27 March, 2020, with GAIL's equity shareholding of 69.06% along with NTPC and others.
During FY 2019-20, Company commenced gas supply to Ramagundam Fertilizers & Chemicals Limited (RFCL), w.e.f. October, 2019 for pre-commissioning of the plant.
In 2020-21, it acquired an equity stake of 5% in Indian Gas Exchange Ltd. (IGX), to trade natural gas at designated physical hubs in India.
During the FY 2021-22, Jagdishpur Haldia and Bokaro Dhamra pipeline (JHBDPL), a total of 1,521 km out of 2,655 km pipeline length
was commissioned while achieving natural gas supply to all 4 major anchor Fertilizers plants, namely M/s Matix Fertilizers, Durgapur and 03 units of M/s Hindustan Urvarak & Rasayan Limited (HURL) at Gorakhpur, Sindri, & Barauni. Capacity augmentation of Vijaipur
to Auraiya section of integrated Hazira-Vijaipur-Jagdishpur Pipeline was completed. Two new natural gas Tie-in Pipelines have
been authorized by PNGRB to your Company for laying viz. (i) from Jaya Field at Jambusar Gujarat to South Gujarat Network (~18 km) and (ii) from LNG Terminal at Jafrabad to Integrated HVJ Network (~170 km). Jamnagar-Loni LPG Pipeline from 2.5 MMTPA to 3.25 MMTPA got completed during the year. Under the Petrochemicals business vertical, 500 KTA Propane Dehydrogenation and Polypropylene (PDH-PP) Project at Usar, Maharashtra, and another 60 KTA Polypropylene (PP) project at Pata, Uttar Pradesh is being set up.
During the FY 2021-22, Company jointly with ONGC Videsh Singapore Pte. Ltd., IOCL Singapore Pte. Ltd., Oil India International Pte. Ltd., and Engineers India Ltd. has formed Bharat Energy Office LLC (BEO), Moscow, Russia for exploring business opportunities in Russia. GAIL also acquired 26% stake in ONGC Tripura Power Company Ltd (OTPC).
During the FY 2022-23, Company acquired 26% stake in M/s LNG Japonica Shipping Corporation Limited from M/s Mitsui O.S.K. Lines, Ltd., Tokyo, Japan. Thereafter, the Company acquired shares of JBF Petrochemicals Ltd. and JBF Petrochemicals became a wholly-owned subsidiary of Company with effect from 01.06.2023. In September, 2022, the Company issued and allotted Bonus Shares to the Shareholders in ratio of One Equity Share of Rs 10 each for every Two Equity Shares of Rs 10 each held. i.e., 1:2.
During FY 2022-23, 1074 km of Natural Gas Pipeline was commissioned. The Company expanded the reach of Pradhan Mantri Urja Ganga Pipeline Project, also known as Jagdishpur Haldia and Bokaro Dhamra Pipeline (JHBDPL) with the commissioning of 2,096 km out of 2,655 km total pipeline length. During FY 2022-23, the major addition to JHBDPL network was made through commissioning of Bokaro-Angul Mainline. It commissioned Sultanpur-Jhajjar-Hisar pipeline (135 km) on 31.03.2023 and commissioned Chainsa-Jhajjar-Hissar (CJHPL) network. Barauni-Guwahati Pipeline in Bihar Section was commissioned on 31 Mar' 23. Kochi to Mangalore Pipeline (KMPL-450 km) passing through Kerala & Karnataka was commissioned. Kootanad to Bengalore Pipeline was commissioned. Phase-2 from Vijaipur to Auraiya-Phulpur Pipeline was commissioned in March 2022. Sultanpur-Jhajjar-Hisar Pipeline was commissioned on 31.03.2023.
GAIL (India) Ltd
Directors Reports
Dear Shareholders,
On behalf of the Board of Directors, I am delighted to present the 39th
Board's Report of your Company, along with Audited Standalone and Consolidated
Financial Statements for the Financial Year 2022-23:
a. Financial highlights on standalone basis for FY 2022-23 are as
under:
|
FY 2022-23 |
FY 2021-22 |
| Particulars |
US $ Million |
(` in crore) |
US $ Million |
(` in crore) |
| Revenue from Operations |
18,181 |
1,44,302 |
12,218 |
91,646 |
| Other Income |
338 |
2,685 |
273 |
2,047 |
| Cost of Sales (excluding Finance Cost and Depreciation &
and amortisation expenses) |
17,337 |
1,37,603 |
10,374 |
77,817 |
| Gross Margin |
1,182 |
9,384 |
2,117 |
15,876 |
| Finance Cost |
39 |
312 |
23 |
174 |
| Depreciation and amortisation expenses |
313 |
2,488 |
281 |
2,111 |
| Profit Before Tax (PBT) |
830 |
6,584 |
1,813 |
13,590 |
| Tax Expense |
162 |
1,282 |
430 |
3,226 |
| Profit After Tax (PAT) |
668 |
5,302 |
1,383 |
10,364 |
| Final Dividend for previous year |
55 |
438 |
- |
- |
| Interim Dividend for current year |
331 |
2,630 |
533 |
3,996 |
| Net transfer to (from) Bond |
- |
- |
(14) |
(105) |
| Redemption Reserve |
|
|
|
|
| Transfer to General Reserve |
- |
- |
138 |
1,036 |
| Net Surplus after |
282 |
2,234 |
726 |
5,437 |
| Appropriations |
|
|
|
|
|
(US $) |
(in `) |
(US $) |
(in `) |
| Earnings per Share ## |
0.10 |
8.04 |
0.21 |
15.56 |
| Book value per Share## |
0.94 |
77.35 |
1.00 |
75.92 |
Note: The following exchange rates are used in calculations:
For FY 2022-23: Average rate 1 US$ = `79.37 & Closing rate 1 US$ =
` 82.57 (for book value per share only)
For FY 2021-22: Average rate 1 US$ = `75.01 & Closing rate 1 US$ =
` 76.17 (for book value per share only)
## Previous year's figures are adjusted for bonus issue of 1:2
shares during FY 2022-23.
b. Key Financial Highlights on a Consolidated basis for FY 2022-23
In accordance with the provisions of the Companies Act 2013 "the
Act", SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015 "SEBi
(lODR) Regulations", and applicable Accounting Standards, the Audited
Consolidated Financial Statements of the Company for FY 2022-23, together with the
Auditors' Report form part of this Annual Report.
The key highlights of the Consolidated Financial Results are as
follows:
|
FY 2022-23 |
FY 2021-22 |
| Particulars |
US $ Million |
(` in crore) |
US $ Million |
(` in crore) |
| Revenue from Operations |
18,379 |
1,45,875 |
12,382 |
92,874 |
| Profit Before Tax |
914 |
7,256 |
2,062 |
15,464 |
| Profit After Tax |
705 |
5,596 |
1,640 |
12,304 |
| Less: Share of Minority |
(3) |
(20) |
6 |
48 |
| Profit for the Group |
708 |
5,616 |
1,634 |
12,256 |
Note: The following exchange rates are used in calculations: For FY
2022-23: Average rate 1 US$ = `79.37 For FY 2021-22: Average rate 1 US$ = `75.01
Business Overview
1. Pipeline Transmission
Natural Gas Transmission
Your Company has expanded the network of Natural Gas pipeline to
~15,600 km across the length and breadth of our country. The average gas transmission
through this network during FY 2022-23 was 107.28 MMSCMD vis-?-vis 110.98 MMSCMD in the
previous financial year. Revenue from operations from Natural Gas Transmission segment in
FY 2022-23 was ` 6,661 crore as against ` 6,392 crore in FY 2021-22. The share in
country's Natural Gas Transmission is 65%.
lPG Transmission
Your Company owns and operates 2,040 km LPG pipeline network majorly
are Jamnagar-Loni Pipeline (JLPL) and the Vizag-Secunderabad Pipeline (VSPL). JLPL and
VSPL networks together achieved a throughput of 4.335 MMTPA during the FY 2022-23 against
4.199 MMTPA in the previous FY 2021-22. Revenue from operations from LPG transmission in
FY 2022-23 was ` 722 crore as against ` 669 crore in FY 2021-22.
2. Natural Gas Marketing
During FY 2022-23, your Company clocked a sales figure of 94.91 MMSCMD
(which included sales within India of 83.03 MMSCMD and overseas sales of 11.88 MMSCMD) as
against 96.24 MMSCMD (which included sales within India of 86.55 MMSCMD and overseas sales
of 9.69 MMSCMD) during FY 2021-22. Revenue from operations from Natural Gas Marketing in
FY 2022-23 was ` 1,35,290 crore as against ` 77,326 crore in FY 2021-22. The share
in country's Domestic Gas Market is 50%.
3. Petrochemicals
During FY 2022-23, your Company recorded a total production of 442 KTA
against a total production of 777 KTA in the FY 2021-22 and sales of 399 KTA in FY
2022-23 as against total sales of 790 KTA in the FY 2021-22. Revenue from Operations from
this segment was ` 4,917 crore as against ` 8,549 crore in FY 2021-22.
4. lPG and Other liquid Hydrocarbon
Your Company has five Gas Processing Units (GPUs) at four locations in
the country having a total LPG & LHC production capacity of 1.4 Million MT. During FY
2022-23, total liquid hydrocarbon production from GPUs was about 0.93 Million MT as
against 1.0 Million MT in FY 2021-22, of which almost 92% constitutes LPG and Propane.
Revenue from Operations from Liquid Hydrocarbons in FY 2022-23 also improved to `
5,570 crore as against ` 4,865 crore in FY 2021-22.
5. Exploration and Production (E&P)
Your Company has participating interest in 13 E&P blocks out of
which 10 are in India, 2 blocks in Myanmar and 1 Shale Gas JV in Eagle Ford Basin, Texas,
USA (through wholly-owned subsidiary - GGUI). Out of these, your Company is an
Operator in three onland blocks viz. (i) CB-ONN-2010/11 and CB-ONHP-2017/12 in Cambay
basin awarded during NELP-IX and OALP-I bidding rounds respectively and (ii) block
RJ-ONHP-2021/1 in Rajasthan basin awarded during OALP-VII bid round. The twelve
E&P blocks (excluding Shale Gas in Eagle Ford Basin) hold an acreage of 2,656 km2 as
per its Participation Interest (P.I.) in various consortiums.
Revenue from the sale of hydrocarbons is being generated from 5
producing blocks namely A-1 & A-3 in Myanmar and CB-ONN-2000/1 & CB-ONN-2003/2
(Cambay onshore blocks) in India and one (1) shale gas JV acreage in Eagle Ford Basin,
Texas, USA.
Revenue from Operations of ` 1,134 crore has been generated from
E&P activities during FY 2022-23 as against ` 834 crore in FY 2021-22. Your Company,
as an operator, has recently started commercial crude oil production from Galiyana#1 field
in Gujarat from March 18, 2023.
6. Renewable Energy
Your Company is committed to reducing its carbon emissions and
therefore implementing several renewable projects. It has a total installed capacity of
132 MW of alternative energy; out of which 117.95 MW is wind energy projects and 14.05 MW
are solar energy projects including small solar units. Revenue from Operations of ` 46
Crore has been generated from Power Generation activities during FY 2022-23 as against `
51 crore in FY 2021-22. Further, in line with the Government of India (GoI) Hydrogen
Mission, your company is running a pilot project for hydrogen blending in city gas network
at Indore, Madhya Pradesh and is setting up a 10MW Green Hydrogen plant at Vijaipur, Guna
District, Madhya Pradesh.
7. Project Execution
FY 2022-23 has been fruitful particularly for Pipeline Project
execution. During the year ~1074 km of natural gas pipeline has been commissioned. Your
Company has achieved 1,330 km of pipeline lowering in FY 2022-23. Pipeline Projects
continue to be major thrust area for your company to build natural gas infrastructure in
the country and 4,200 km of pipeline project as a part of National Gas Grid & other
small connectivities are under different stages of project execution.
Your Company has expanded the reach of Pradhan Mantri Urja Ganga
Pipeline Project, also known as Jagdishpur Haldia and Bokaro Dhamra pipeline (JHBDPL) with
the commissioning of 2,096 km out of 2,655 km total pipeline length. All the 4
major anchor Fertilizers plants, namely M/s Matix Fertilizers, Durgapur and 03 units of
M/s Hindustan Urvarak & Rasayan Limited (HURL) at Gorakhpur, Sindri, and Barauni are
drawing full volumes.
During FY 2022-23, the major addition to JHBDPL network was made
through commissioning of Bokaro-Angul Mainline. On 12.07.2022 , Hon'ble Prime
Minister of India Shri Narendra Modi dedicated the Bokaro-Angul Section (~533 km) of
JHBDPL to the Nation. Dhamra-Angul Mainline with spur lines to Jamshedpur, Ranchi, Cuttack
& Bhubaneshwar have been commissioned. This will fast track the expansion of CGD
network to these important cities. Your company has also commissioned
Sultanpur-Jhajjar-Hisar pipeline (135 km) on 31.03.2023 and completed
Chainsa-Jhajjar-Hissar (CJHPL) network. With the commissioning of Dhamra-Angul Mainline,
your Company has connected another gas source to JHBDPL network enabling RLNG supply from
Dhamra LNG terminal on the east coast of India in the state of Orissa.
Your company is also extending JHBDPL project to the North-eastern
region of India up to Guwahati in Assam with construction of 729 km Barauni-Guwahati
Pipeline. Bihar section of Barauni-Guwahati Pipeline have been commissioned on 31.03.2023.
Guwahati is the gateway to the North Eastern Gas Grid being implemented by M/s
Indradhanush Gas Grid Limited (IGGL), a Joint Venture of GAIL, IOCL, ONGC, OIL and NRL
which is executing around 1,656 km natural gas pipelines to connect the eight states of
North-East India.
Further, your Company is committed to increase reach of Natural Gas in
the country by way of providing Last Mile Connectivity to Industrial customers and to City
Gas Distribution (CGD) entities for supply of natural gas as CNG and PNG to various
cities. During the year, the Company has completed 30 nos. of hook-up connections
to CGD Geographic Areas (GAs), 5 nos. Last Mile Connections to Industrial customers
and 02 nos. of Tie-in connectivities from Natural Gas Sources during the year. Further,
work is under progress to provide connectivity to another 6 Industrial customers & 40
CGD Geographic Areas (GAs).
In order to strengthen and increase your Company's natural gas
transmission network to ~20000 km, your company is also executing other important pipeline
projects which include Mumbai-Nagpur-Jharsuguda Pipeline (1755 km), Srikakulam-Angul
Pipeline (744 km), part of Kochi-Koottanad-Bangalore-Mangalore Pipeline (KKBMPL) (~294 km)
remaining in the State of Tamil Nadu, Dhamra-Haldia Pipeline (253 km) &
Haridwar-Rishikesh-Dehradun Pipeline (50 km). These projects are at various stages of
project execution. Hon'ble Prime Minister laid the foundation stone for Srikakulam-
Angul Pipeline on 12.11.2022.
Under the Petrochemicals business vertical, work is under progress on
500 KTA Propane Dehydrogenation and Polypropylene (PDH-PP) Project at Usar, Maharashtra,
and 60 KTA Polypropylene (PP) project at Pata, Uttar Pradesh. Through Corporate
Insolvency Resolution process (CIRP), your Company was declared successful Resolution
Applicant to acquire Purified Terephthalic Acid (PTA) plant of JBF Petrochemicals,
Mangalore and the process for its revival is underway.
Buyback of Shares
Your Company has made buyback of 5,69,85,463 (Five Crore Sixty Nine
Lakh Eighty Five Thousand Four Hundred and Sixty Three) fully paid-up equity shares of
face value of ` 10 each (representing 1.28 % of the total number of fully paid-up equity
shares) at a price of ` 190 (Rupees One Hundred Ninety only) per equity share payable in
cash for an aggregate consideration of ` 1082,72,37,970 (Rupees One Thousand Eighty Two
Crore Seventy Two Lakh Thirty Seven Thousand Nine Hundred and Seventy only) excluding
taxes. After buyback process, the paid-up equity share capital of the Company reduced from
` 4,440.39 crore to ` 4,383.40 crore w.e.f. June 21, 2022.
Disinvestment by President of india
Your Company is promoted by the Government of India (GOI). GOI tendered
2,62,03,384 equity shares of the Company under the buyback offer and the same was bought
back by the Company. Post buyback of shares, the GOI's shareholding was
2,25,83,86,698 equity shares representing 51.52% of paid-up share capital on 26.06.2022 as
against 51.45% held prior to buyback. i
INCREASE IN AUTHORISED SHARE CAPITAL
Pursuant to shareholders approval in 38th AGM held on 26.08.2022, the
Authorised Share Capital of the Company was increased from ` 5,000 crore (` Five
Thousand Crore) to ` 10,000 crore (` Ten Thousand Crore).
ISSUE OF SHARES
In September, 2022, your Company issued and allotted Bonus Shares to
the shareholders in ratio of one equity share of ` 10 each for every two equity shares of
` 10 each held as on record date i.e. 07.09.2022. As a result, the Paid-up Equity
Capital has increased from ` 4,383.40 crores to ` 6,575.10 crores by capitalizing the
General Reserves of ` 2191.70 crore.
Dividend
Your Company takes pride in being a consistent dividend-paying Company.
The Board of Directors had approved payment of Interim Dividend during the financial year
@ 40% on equity shares of ` 10 each (` 4.00/- per equity share each) amounting to `
2,630.04 crore. The Interim Dividend(s) was paid in March, 2023 in addition to Final
Dividend @10% on equity shares of ` 10 each (` 1.00/- per equity share each) for FY
2021-22 amounting to ` 438.34 crore paid in September, 2022.
The details of the Unclaimed Dividend are covered in the Corporate
Governance Report section, which forms part of the Board's Report.
Employee Stock Option (ESOP)
Your Company has not provided any Employee Stock Option, therefore,
disclosure requirement in relation to ESOP under Rule 12(9) and Rule 16(4) of the
Companies (Share Capital and Debentures) Rules, 2014 is not applicable.
Contribution to Exchequer
Your Company has contributed ` 14,446 crore in FY 2022-23 to the
Central & State exchequer through duties, taxes, and others as compared to ` 13,090
crore in FY 2021-22.
Credit Rating of the Company
Domestic rating
Your Company has been reaffirmed with the highest domestic credit
rating of ‘AAA' with stable outlook by ICRA, CARE and India ratings. This
signifies the highest domestic long term credit rating in India, and hence, signifies a
very low credit risk of the Company.
International Rating
The International rating agency, Moody's International, Singapore,
has assigned to your Company the Long Term Corporate Issuer rating of ‘Baa3'
with stable outlook which is equal to the sovereign rating of India. Further, Fitch
Ratings has assigned to your Company a Long-term Issuer Rating of ‘BBB- with a stable
outlook, which is also equivalent to the sovereign rating of India. Both these
international rating agencies have indicated that your Company's rating is now capped
to the Sovereign rating of India and it may be upgraded once the sovereign rating of India
improves.
Debt portfolio management
The Company managed its liquidity requirements through a judicious mix
of long-term and short-term borrowings and internal accruals. This helped the Company to
reduce its cost of capital without impacting the planned Capex. To rationalise the Cost of
Capital, the Company makes effort to refinance old loans at lower interest rates and to
tie-up for long-term and short-term facilities with Banks and Financial Institutions for
fresh borrowings at competitive rates. These measures results in reduction in effective
long-term borrowing cost.
Particulars of loans, investments and Corporate Guarantees
Details of investments, loans and guarantees covered under Section 186
of the Companies Act, 2013 forms part of the Financial Statements presented in this Annual
Report.
Subsidiaries / Associates / Joint Ventures
Your Company has formed various subsidiaries/associates/joint venture
companies for different business areas such as City Gas Distribution (GAIL Gas Limited,
Indraprastha Gas Limited, Mahanagar Gas Limited etc.), Petrochemical production
(Brahmaputra Cracker and Polymer Limited, ONGC Petro-additions Limited), LNG
Re-gasification (Konkan LNG Limited, Petronet LNG Limited), Gas trading (GAIL Global
(Singapore) Pte. Limited) and Shale Gas (GAIL Global (USA) Inc.), LNG sourcing (GAIL
Global (USA) LNG LLC). Contracts or arrangements/transactions carried out with all the
related parties were on arm's length basis and in the ordinary course of business.
During the FY 2022-23, your Company has acquired 26% stake in M/s LNG Japonica Shipping
Corporation Limited ("Japonica") from M/s Mitsui O.S.K. Lines, Ltd., Tokyo,
Japan. "Japonica" operates LNG vessel "GAIL Bhuwan" and your Company
has signed Time Charter Party Agreement (TCP) with Japonica for shipping LNG from USA.
Your Company is constantly in search for acquisition of Companies in synergy with GAIL or
in diverse fields. Equity investments opportunities are scrutinized on regular basis. One
such opportunity was acquisition of a JBF Petrochemicals Limited (JBF), a Petrochemicals
Company incorporated in 2008 for setting up of 1.25 MMTPA Purified Terephthalic Acid (PTA)
Plant within Mangalore Special Economic Zone (MSEZ) in the State of Karnataka. In the year
2022, Resolution Professional of JBF submitted GAIL's Resolution Plan for approval of
the Hon'ble NCLT, Ahmedabad Bench in accordance with the provisions of the Insolvency
and Bankruptcy Code, 2016 (IBC).
Resolution Plan of GAIL was approved by NCLT, Ahmedabad on 13.03.2023.
As per implementation of the Resolution Plan, your Company infused ` 2,101 crores (Equity
– ` 625.00 crore and Debt - ` 1,476.00 crore) towards total Resolution Plan amount in
JBF on 01.06.2023. Consequently, JBF has become a wholly-owned subsidiary of your Company
with effect from 01.06.2023.
The subsidiaries/associates/joint venture companies have contributed
significantly to your Company's business expansion activities. A statement containing
the salient features of the Financial Statements of your Company's Subsidiaries,
Associate Companies and Joint Ventures as per the first proviso of Section 129(3) of the
Companies Act, 2013 including the individual contribution of these companies towards the
overall performance of Company during the period is given under Consolidated Financial
Statements forming part of this Annual Report. Investment in no subsidiary/joint venture
company ceased to exist during the year.
Vigilance
Corporate Vigilance department of your Company is ISO-9001:2015
certified for having adopted Quality Management System in compliance with the requirements
of ISO. During the year, various steps have been taken that focused on bringing in
systemic improvement for ensuring greater transparency, fairness, efficiency and
accountability. To sensitize the employees about various aspects of contract management,
specialized trainings were organized at different GAIL locations and Vigilance Awareness
Week (VAW) 2022 was observed at Corporate Office and site Offices from 31st October to 6th
November 2022, under the guidance of Central Vigilance Commission (CVC) on the theme
"Corruption free India for a developed Nation"; "Hkz"Vkpkj eq?
Hkkjr& fodflr Hkkjr" A Summary of vigilance cases during the year 2022-23 is
as under:
| Complaint/ Detailed investigations |
Opening Balance (as on 01.04.2022) |
Received during the year |
Total |
Disposed off during the year |
Closing balance as on 31.03.2023 (under
investigation) |
| Complaints |
25 |
93 |
118 |
98 |
20 |
| Detailed Investigation |
1 |
11 |
12 |
9 |
3 |
Customer Relationship
Customer loyalty and satisfaction are at the heart of your Company's
business and is highly essential for its long-term growth. GAIL reviews its strategies,
redefines its approaches and undertakes business initiatives focused on providing better
services. It believes in keeping its customers informed about the business operations to
build lasting relationships and ensure better customer satisfaction.
INFORMATION SYSTEMS AND TECHNOLOGY
As a leading company in the Natural Gas value chain in India, your
Company recognizes the importance of leveraging information technology (IT) to drive
business growth and innovation. Your Company has adopted start-of-the-art technology
solutions with a vision to improve productivity, efficiency, customer experience and gain
a competitive advantage while reducing costs. Your Company remains committed to leveraging
IT to support business growth and drive value for its stakeholders.
Your Company has implemented robust cyber security measures to protect
the IT systems and data from cyber threats and attacks. This includes operating
round-the-clock Security Operations Centre (SOC) with advanced security software,
implementing regular security audits, and providing ongoing training and education to our
employees. The IT data centres are ISO27001:2013 certified.
Representation of Priority Section
Your Company has been complying with the Presidential Directives and
other instructions/guidelines issued from time to time pertaining to Policies and
Procedures of Government of India regarding reservation, relaxations, concessions etc. for
Scheduled Castes (SCs), Scheduled Tribes (STs), Other Backward Classes (OBCs),
Economically
Weaker Sections (EWSs) and Persons with Benchmark Disabilities (PwBDs)
in Direct Recruitment. Group wise details with regard to total number of employees and the
representation of Scheduled Castes, Scheduled Tribes, Other Backward Classes, Economically
Weaker Sections, Persons with Benchmark Disabilities amongst them as on 31st March, 2023
are given in the table below:
| Group |
Total No. of Employees on Roll |
SC |
ST |
OBC |
PwBD |
EWS under General |
| A |
3776 |
604 |
270 |
841 |
59 |
40 |
| B |
308 |
34 |
19 |
98 |
7 |
0 |
| C |
690 |
129 |
34 |
246 |
31 |
0 |
| D |
43td>
| 12 |
5 |
12 |
0 |
0 |
| CMD, Whole- time Directors & CVO |
6 |
0 |
0 |
0 |
0 |
0 |
| Grand Total (31.03.2023) |
4,823 |
779 |
328 |
1197 |
97 |
40 |
| Total number of employees as on 31.03.2022 |
|
|
|
|
|
|
|
4,754 |
780 |
322 |
1,130 |
96 |
26 |
A total of 264 new employees joined your Company during the FY 2022-23.
Total Manpower of the Company as on 31st March, 2023 stood at 4823 (including CMD,
Whole-time Directors & CVO) with 16% of its employees belonging to the SC category, 7%
to the ST category, 25% to the OBC category, 8% to the Minorities and 2% to the
Persons with Benchmark Disabilities (PwBDs) category. Your Company's workforce is
comprised of 312 women employees (i.e. 6% of its employees) as on 31st March, 2023. The
Company's attrition rate is 0.97%, which is a testament to its strong human capital
management.
Official language
The Official Language Implementation Committees at the Corporate and
Work Centre level meets every quarter to monitor and review the progress made for
achieving the targets fixed in the Annual Program issued by the Official Language
Department, Ministry of Home Affairs, Government of India.
As many as 152 Hindi workshops were conducted during FY 2022-23 in
which 3,119 employees were imparted training. Hindi Fortnight was observed across your
Company from 14th to 29th September, 2022 to propagate linguistic harmony and to motivate
the employees for the progressive usage of Hindi in their day-to-day work. Vishwa Hindi
Divas was celebrated across GAIL on 10th January,2023. The First Sub-Committee of
Committee of Parliament on Official Language inspected GAIL Madanpur Khadar, Mumbai,
Vadodara, Kochi, Hyderabad Zonal Office, Varanasi, Abu Road, Nasirabad, Lucknow Zonal
& Dibiyapur to review the steps undertaken to promote the Official Language.
Your Company has been awarded the Second prize for the year 2019-20 and
Third prize for the year 2021-22 under the Petroleum Rajbhasha Shield Scheme for
Commendable performance in the field of Official Language. These awards were presented by
Shri Hardeep Singh Puri, Hon'ble Minister of Petroleum and Natural Gas during the Hindi
Advisory Committee Meeting of MoPNG held on 25th November, 2022.
Disclosure in relation to Sexual Harassment of Women at Workplace
Your Company has in place a robust Policy on Prevention, Prohibition
and Redressal of Sexual Harassment of Women at Workplace in line with the requirements of
the Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act,
2013. Disclosures in relation to the Sexual Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013 with respect to FY 2022-23 is as under:
| a) Number of complaint pending at the beginning of the
financial year |
NIL |
| b) Number of complaint filed during the financial year |
NIL |
| c) Number of complaint disposed off during the financial year |
NIL |
| d) Number of complaint pending at the end of the financial
year |
NIL |
Your Company is a socially responsible business organization and offers
ample opportunities via its Public Procurement Policy (PPP) for vendors and suppliers.
This gives fair opportunities to MSEs, encouraging participation and cultivating
sustainable growth. While implementing its Public Procurement Policy (PPP) for MSEs, your
Company focuses on the following allocation: 25% of the procurement from MSEs, 4% from
MSEs owned by the SC/ST entrepreneurs and 3% from MSEs owned by the women entrepreneurs.
In terms of the said policy, during the FY 2022-23, your Company made total procurement of
` 1541 crore from MSEs which is approx. 46.09 % of the total eligible value of annual
procurement of approx. ` 3415 crore. The procurement made from MSEs owned by SC/ST
Entrepreneurs is ` 137 crore which is approx. 4.01 % of the total eligible value of annual
procurement and that from MSEs owned by Women Entrepreneurs is ` 108 crore which is
approx. 3.61 % of the total eligible value of annual procurement.
Further, 20 Vendor Development Programmes for MSEs (including 4
Special Vendor Development Programmes/Hand Holding Sessions especially for MSEs owned by
SC/ST & Women Entrepreneurs) were conducted. Your Company is already registered on the
Trade Receivable e-Discounting System (TReDS) portal of all the three service providers
(i.e. M/s Mynd Solutions, M/s A TReDS, and M/s RXIL) and is also making payment to MSEs
vendors through TReDS.
Procurement through Government e-Marketplace (GeM):
The Government e-Marketplace (GeM) is a Government-run e-commerce
portal. It is a one-stop to facilitate and enable easy online procurement of Goods &
Services that are needed by various Government Departments, Organizations and PSUs. All
work centers of your Company are registered on GeM Portal and are procuring the Goods
& Services available on the portal through GeM only. During the FY 2022-23, the
Company had made procurement of ` 2541 crore through GeM (which is more than 25% of
total eligible procurement in the year).
MoU Performance
The Memorandum of Understanding (MoU) is signed every year between your
Company and its administrative ministry i.e., MoP&NG, to assess and enhance
performance of Company through the targets set therein. The MoU for FY 2022-23 was signed
between Secretary (P&NG), Government of India and CMD of your Company.
The evaluation of MoU of your Company for FY 2022-23 is under process.
Evaluation of MoU for FY 2021-22 has been completed by DPE and GAIL has achieved a score
of ‘94.45', which corresponds to ‘Excellent' rating.
Right to information
To promote transparency and accountability, an appropriate mechanism
has been set up across the Company in line with the provisions of Right to Information
Act, 2005. Your Company has nominated 01 Central Public information Officer (CPiO) &
01 link-CPiO/Nodal Officer (Online RTi) at Corporate office,
58 Assistant CPiOs and 25 First Appellate Authorities across
all its units/offices to provide information to citizens under the provisions of the RTI
Act, 2005. Your Company has hosted RTI Guidelines and related information on its website
and the same may be accessed at https://gailonline.com/ RTI.html. Besides, MIS Report on
RTI Applications, Record Retention Schedule, and latest RTI Audit Report have also been
web-hosted under the same link. Keeping in view the purpose of suo-motu disclosures under
Section 4 of the RTI Act, 2005, your Company has hosted a dedicated page on its website,
through which a large amount of information in the public domain is placed on a proactive
basis. This is being done to make the functioning more transparent and reduce the need for
filing individual RTI applications. Further, your Company has been made LIVE on the
Government of India-DoPT Online RTI Portal from July, 2016 and ever since GAIL is
providing information through Online mode also.
Approximately, 85% of the RTI applications/1st stage appeals are
received through online mode. All RTI applications received (online/physically mode) are
being processed as per the provisions of the RTI Act, 2005 and the information is provided
accordingly within prescribed time limit. For FY 2022-23, your Company's Corporate RTI
Cell has a 100% disposal rate in respect of RTI Applications and First stage RTI Appeals
received. A total of 875 RTI applications and 110 RTI Appeals were disposed-off within the
prescribed time schedule as per the provisions of the RTI Act. Further, there was no
penalty/adverse remarks received from Hon'ble Central Information Commission during
the FY 2022-23 in respect of the second appeal(s) filed by RTI Appellant(s).
Risk Management
The details on the Risk Management activities including the
implementation of risk management policy, key risks identified, and their mitigations are
covered in the Management Discussion and Analysis section, which forms part of the
Board's Report.
Management Discussion and Analysis
In terms of Regulation 34 of SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 and clause 7.5 of DPE Guidelines on Corporate Governance,
the detailed Management Discussion and Analysis forms part of the Board's Report as Annexure-
A.
Corporate Governance
Your Company believes that good corporate governance plays a critical
role in establishing a positive organizational culture. Pursuant to the SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015 and DPE guidelines on Corporate
Governance, a report on Corporate Governance is part of Board's Report as Annexure-
B.
The details of the meetings & composition of the Board, Statutory
Committees of the Board including the terms of reference, Company's policy on
Directors' appointment and their remuneration, their shareholding in the Company,
details of the establishment of whistle-blower mechanism, details related to Annual
General Meeting, information pertaining to Dividends declared, IEPF details and other
matters, etc. are part of report on Corporate Governance.
There are no significant and material orders passed by the Regulators
or Courts or Tribunals impacting the going concern status and operations of your Company
in the future.
The Statutory Auditors of the Company have examined and certified your
Company's compliance with respect to conditions enumerated in SEBI (LODR) Regulations
and DPE guidelines on Corporate Governance. The certificate is part of Board's Report
as Annexure- C.
Business Responsibility & Sustainability Report
As per SEBI (LODR) Regulations for FY 2022-23, your Company is required
to submit a Business Responsibility and Sustainability Report in place of Business
Responsibility Report. Your Company has adopted Business Responsibility &
Sustainability Report (BRSR) describing the initiatives taken by the Company from an
Environmental, Social and Governance perspective and the same is part of the Annual
Report. Bankers' Meet
Auditors and Audit Reports
1. Statutory Auditors
The Statutory Auditors of your Company are appointed by the Comptroller
& Auditor General of India (C&AG). M/s A.R.
& Co., Chartered Accountants, New Delhi and M/s Gandhi Minocha
& Co., Chartered Accountants, New Delhi were appointed as Joint Statutory Auditors for
the FY 2022-23. Notes on Financial Statements referred to in the Statutory Auditors'
Report are self-explanatory. There are no qualifications on the financial statements by
the Statutory Auditors for FY 2022-23.
Comptroller and Auditor General of india (C&AG) Audit
Supplementary Audit of Financial Statements:
Review and Comments of C&AG, if any on the Company's Financial
Statements for the financial year ended 31st March, 2023 forms part of the Financial
Statements.
Shri R. K. Jain, Director (Finance), GAIL addressing a Bankers' Meet
C&AG paras from other audits:
In addition to the supplementary audit of the financial statements
mentioned above, the C&AG conducts audits of various nature. As on 31st March 2023,
there are fourteen pending published Paras related to C&AG audit including Irregular
payment of stagnation relief, Irregular payment of income tax on perquisites to employee,
Benefit extended to Private power producers, Non recovery from RIL, Abandon E&P
blocks, Irregular payment towards encashment of Half pay/Sick leave/Earned leave,
Irregular payment towards employer's share of EPF contribution on leave encashment,
Petrochemical Production and Project Management, Safety preparedness of Oil & Gas
transmission pipelines, Special Monetary Appreciation to its employees, Benefit extended
to the executives in form of shift allowance, Delay in completion of Minimum Work Program
related to E&P, Infructuous expenditure due to non-compliance with O&M guidelines,
Benefit to the executives in the form of payment of running and maintenance expenses of
vehicles. The replies to these paras have been submitted and the status reports are also
being furnished from time to time.
2. Cost Auditors
Your Company appointed six Cost Auditors for FY 2022-23 as follows:
| S.No. Name of the Cost Auditor |
Region |
| 1 M/s R J Goel & Co., New Delhi |
Northern Region–I |
| 2 M/s Chandra Wadhwa & Co., New Delhi |
Northern Region–II |
| 3 M/s Shome & Banerjee, Kolkata |
Central Region |
| 4 M/s A B K & Associates, Mumbai |
Western Region |
| 5 M/s Dhananjay V Joshi & Associates, Pune |
Southern Region |
| 6 M/s Mani & Co., Kolkata |
Eastern Region |
M/s R J Goel & Co., New Delhi is the lead Cost Auditor.
Your Company is maintaining Cost Accounting Records as prescribed under
the Companies (Cost Records and Audit) Rules, 2014, specified by the Central Government
under sub-section (1) of section 148 of the Companies Act, 2013.
The cost audit reports are filed by the Lead Cost Auditor with the
Central Government in the prescribed form within the stipulated time. There are no
qualifications in the cost records by the Cost Auditors for FY 2021-22.
The Cost Audit Report for the financial year ended March 31, 2023 shall
be filed within the prescribed time period under the Companies (Cost Records & Audit)
Rules, 2014.
3. internal Auditor
Your Company has an In-house Internal Audit Department, which is headed
by Executive Director. Your Company had also outsourced the internal audit of selected
sites and had appointed four Internal Audit Firm(s) during FY 2022-23 for each region. The
details of Internal Audit Firm(s) are as under:-
| S.No. Name of the internal Auditor |
Region |
| 1 M/s G S Mathur & Co. Chartered Accountants |
Northern |
| 2 M/s Niranjan & Narayan, Chartered Accountants |
Southern |
| 3 M/s Bandopadhyaya Bhaumik & Co. Cost Accountants |
Eastern |
| 4 M/s K G Somani & Co. LLP, Chartered Accountants |
Western |
4. Secretarial Auditor
Your Company appointed M/s Agarwal S. & Associates as Secretarial
Auditor for FY 2022-23. Secretarial Audit Report confirming compliance by Practicing
Company Secretary to the applicable provisions of the Companies Act, 2013, SEBI (LODR)
Regulations, and other applicable laws is part of the Board's Report as Annexure-D.
Secretarial Auditor has made an observation that GAIL has been
furnishing shorter notice to Stock Exchanges in respect of prior intimation about the
meeting of the Board of Directors held on 27.05.2022 for consideration of final dividend.
Your Company's substantive response to the qualifications made in the Secretarial
Audit Report was as under: For the FY 2021-22, GAIL was already complying Guidelines on
Capital Restructuring of Central Public Sector Enterprises issued by Department of
Investment & Public Asset Management (DIPAM) as Company had already paid 1st Interim
Dividend (@ ` 4 per share) & 2nd Interim Dividend (@ ` 5 per share) in
December, 2021 & March, 2022 respectively. However, based on Q4 performance, it was
considered appropriate by the Management on 26.05.2022 that matter for considering Final
Dividend for the benefit of the shareholders may be put up in the proposed 441st Board
meeting scheduled for 27.05.2022. Accordingly, the intimation regarding consideration of
Final Dividend in 441st Board Meeting to be held on 27.05.2022 was sent to Stock Exchanges
on 26th May, 2022. The Company had requested to Stock Exchanges vide letter dated
16.06.2022 for waiver of fine imposed on account of such non-compliance. However, NSE did
not acceded to GAIL request for waiver of fine which was intimated vide letter dated
01.06.2023 and accordingly, fine was deposited to NSE on 07.06.2023. Reply from BSE is
awaited.
The Company was fully compliant with the mandatory requirements of SEBI
(LODR) Regulations and the Companies Act, 2013 during the FY 2022-23 except as stated
above.
Performance Evaluation of Directors
Your Company is a Central Public Sector Enterprise (CPSE) and
appointment/nomination of all the Directors including Independent Directors are being done
by the President of India, through the MoP&NG, Government of India. Therefore,
performance evaluation of individual Directors including Independent Directors is carried
out by the Government of India.
Corporate Social Responsibility (CSR)
Your Company firmly believes that the commitment towards playing a
defining role in the development of its stakeholders extends to uplifting lives of the
marginalized segments of the society, living in and around its areas of operation. The
principles of Corporate Social Responsibility (CSR) are deeply imbibed in your
Company's corporate culture. To amplify outreach efforts, the Company has incurred an
expenditure of ` 99.1 crores. i.e. 2.18% of the avg. net profit of the preceding three
years after setting off the excess expenditure of previous financial years.
Annual Report on CSR activities as required under Companies (Corporate
Social Responsibility Policy) Rules, 2014 is placed at Annexure-E.
Your Company's CSR Policy is also available on Company website at
https://www.gailonline.com/CSRPolicy.html
Energy Conservation, Technology Absorption and Foreign Exchange
Earnings & Outgo
As per requirement of Section 134 (3)(m) of the Companies Act, 2013
read with Rule 8(2) of the Companies (Accounts) Rules, 2014, details of conservation of
energy and technology absorption and foreign exchange earnings and outgo are part of the
Board's report at Annexure- F.
Particulars of Contracts or Arrangements with Related Parties
As per requirement of Section 134 (3) (h) of the Companies Act, 2013
read with Rule 8(2) of the Companies (Accounts) Rules, 2014 particulars of contracts or
arrangements with Related Parties as referred in section 188(1) of the Companies Act, 2013
in the prescribed form AOC-2 forms part of the Board's report at Annexure-G.
Your Company has formulated the policy on dealing with Related Party Transactions and the
same is hosted on the website at
https://www.gailonline.com/pdf/InvestorsZone/GAILRelatedParty
TransactionPolicyMarch2022.pdf
Particulars of Employees
As per notification dated June 5, 2015 issued by the Ministry of
Corporate Affairs, Government of India, Government Companies are exempted from complying
with the provisions of Section 197 of the Companies Act, 2013. As your Company is a
Government Company, information as required under said provisions have not been included
in the Board's Report.
Annual Return
Annual Return is hosted on your Company's website at https://
gailonline.com/IZAnnualReports.html
Dividend Distribution Policy
As per Regulations 43A of the SEBI (LODR) Regulations, your Company has
formulated a Dividend Distribution Policy. The dividend pay-out is made in accordance with
the Company's Dividend Distribution Policy. The Dividend Distribution Policy of the
Company is available on the Company's website, at
http://gailonline.com/pdf/InvestorsZone/ GAIL%20Dividend%20Distribution%20Policy.pdf
Acceptance of Deposits
Your Company has not accepted any Deposit during the FY 2022-23.
Fund Raising
During FY 2022-23, your Company had issued 15,750 numbers of 7.34%
Senior, Unsecured, Listed, Rated, Taxable, Non-Cumulative,
Redeemable, Non-Convertible Debentures (Series-I) of `10,00,000/-
(Rupees Ten Lakh) each aggregating to ` 1575,00,00,000 (Rupees One Thousand Five Hundred
Seventy-Five Crore) on Private Placement basis on 20th December, 2022 (ISIN- INE129A0801).
The same are listed both on the National Stock Exchange of India Limited (NSE) as well as
on BSE Limited (BSE).
Foreign Exchange Earnings and Outgo
During FY 2022-23, Foreign exchange inflows were ` 28,136.38 crore and
Foreign Currency outflows were ` 69,228.61 crore.
Board of Directors and Key Managerial Personnel
The following changes took place in the Board of Directors/Key
Managerial Personnel of your Company since 01st April, 2022:
Appointments:
Shri Sandeep Kumar Gupta, Chairman and Managing Director w.e.f.
03.10.2022
Shri Ayush Gupta, Director (HR) w.e.f. 22.08.2022
Shri Mahesh Kumar Agarwal, Company Secretary w.e.f. 27.08.2022
Shri Praveen Mal Khanooja, Government Nominee Director w.e.f.
16.05.2023
Shri Kushagra Mittal, Government Nominee Director w.e.f. 16.05.2023
Shri Sanjay Kumar, Director (Marketing) w.e.f. 15.06.2023
Cessations:
Shri E. S. Ranganathan, Director upto 11.08.2022
Shri A. K. Jha, Company Secretary upto 26.08.2022
Shri Manoj Jain, Chairman and Managing Director upto 31.08.2022
Dr. Navneet Mohan Kothari, Government Nominee Director upto 18.04.2023
The Board placed on record its deep appreciation for the valuable services rendered by
outgoing Directors during their association with the company.
INDEPENDENT DIRECTORS' DECLARATION
The Company has received necessary declaration from Independent
Directors in accordance with Section 149(7) of the Companies Act, 2013 and Regulation
25(8) of the SEBI (LODR) Regulations, confirming that:
They meet the criteria of independence as laid out in Section 149(6) of
the Act and Regulation 16(1) (b) of the SEBI (LODR) Regulations.
They have registered themselves with the database of Independent
Directors maintained by the Indian Institute of Corporate Affairs under the Ministry of
Corporate Affairs.
Familiarization Program for independent Directors
The details of Independent Directors' training/familiarization
programmes are available on the Company's website at https://
www.gailonline.com/pdf/InvestorsZone/GAILfamiliarizationprogram 23032022.pdf
Code of Conduct
Pursuant to the requirements of SEBI (LODR) Regulations and DPE
Guidelines on Corporate Governance, the Board Members and Senior Management Personnel have
affirmed compliance with the Code of Conduct for the financial year ended 31st March,
2023.
INSOLVENCY AND BANKRUPTCY CODE, 2016
No application has been made under the Insolvency and Bankruptcy Code;
hence the requirement to disclose the details of the application made or any proceeding
pending under the Insolvency and Bankruptcy Code, 2016 (31 of 2016) during the year along
with their status as at the end of the financial year is not applicable.
Directors' Responsibility Statement
Your Directors confirm that they have: i) followed applicable
accounting standards, along with proper explanation relating to material departures in the
preparation of the annual accounts for the financial year ended March 31, 2023; ii)
selected such accounting policies and applied them consistently and made judgments and
estimates that are reasonable and prudent to give a true and fair view of the state of
affairs of the Company at the end of the financial year and of the profit of the Company
for the year under review; iii) taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of the Companies Act, 2013,
for safeguarding the assets of the Company and for preventing and detecting fraud and
other irregularities; iv) prepared the annual accounts for the financial year ended March
31, 2023 on a going concern basis; v) devised proper systems to ensure compliance with the
provisions of all applicable laws and such systems were adequate and operating
effectively; and vi) laid down internal financial controls to be followed by the Company
and that such internal financial controls are adequate and are operating effectively.
Acknowledgment
Your Directors express their gratitude for the help, guidance and
support received from the Government of India, especially the Ministry of Petroleum and
Natural Gas as well as the various State Governments, regulatory and statutory
authorities.
Your Directors acknowledge the constructive suggestions received from
Comptroller and Auditor General of India and Auditors, and are grateful for their
continued support and cooperation.
Your Directors also thank all the share owners, business partners, and
members of the GAIL family for reposing their faith, trust and confidence in your Company.
All that we have achieved would not have been possible without the
relentless and focused efforts of your Company's employees; we place our deep
appreciation for their commitment.
Your Directors also express their gratitude for the help, guidance and
support received from the outgoing Board Members.
Your Directors and employees look forward to the future with confidence
and stand committed towards creating a mutually rewarding future for all stakeholders.
|
For and on behalf of the Board |
|
Sd/- |
|
Sandeep Kumar Gupta |
| Place: New Delhi |
Chairman & Managing Director |
| Dated: 10.07.2023 |
(DiN: 07570165) |
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