Gail Research Paper

| 2014 |

| Section-C

|

[STM Assignment:Gas Authority of india ltd.] |

The following report aims to study the history, business model, core competencies & the competitive environment in the context of GAIL |

GAIL:

Key Partners:

GAIL has formed Subsidiaries and joint venture companies for city gas distribution and petrochemicals. GAIL is one of the pioneers to introduce City Gas Projects in India for gas supplies to households, commercial users and for the transport sector by forming subsidiaries/ joint venture companies.

Subsidiaries:

GAIL Gas Limited

GAIL Gas is a wholly owned subsidiary of GAIL. GAIL Gas has been selected for implementation of City Gas Distribution (CGD) projects in four cities, namely, Kota, Dewas, Sonepat & Meerut in the 1st round of bidding by Petroleum & Natural Gas Regulatory Board (PNGRB). GAIL Gas has already started supply of CNG & PNG (industrial customers) in the city of Dewas from December 2009. Steel Pipeline laying work is in progress in the cities of Meerut, Sonepat & Kota. The gas supplies will commence shortly in these cities. The total approved investment in all these cities is approx. 435 crore (US$71 million) in phase-I.

Brahmaputra Cracker and Polymer Limited (BCPL)

GAIL has 70% equity share in BCPL, a subsidiary, with Oil India Limited (OIL), Numaligarh Refinery Limited (NRL), Govt. of Assam, each having 10% equity share. Feedstock Supply Agreements have been signed between BCPL and all the three suppliers, viz., Oil and Natural Gas Corporation Limited, Oil India Limited and Numaligarh Refinery Limited. Technology licence agreements have been signed for cracker, polyethylene and polypropylene units. BCPL is setting up a 280,000 TPA polymer plant at an investment of 5460 crore (US$890 million). Financial commitment to the extent of 3000 crore (US$490 million) has...