Government drops plan to bifurcate marketing and pipeline operations of GAIL

According to the Ministry of Petroleum and Natural Gas, the central government has dropped its plan to split gas transportation utility GAIL into two, by unbundling its marketing and gas transportation operations, for now. GAIL currently has the monopoly, both in terms of marketing and transportation of gas. This creates conflict of interest and affects discovery of competitive gas pricing. Further, the bifurcation proposal involved hiving off GAIL’s pipeline business into a separate entity.