The GAIL Officers’ Committee has written to the office of the Prime Minister expressing its “shock and anguish” over reports that the government was considering unbundling the Maharatna company’s marketing and transport businesses.
Several media reports have emerged over the last month quoting government officials saying that the sector regulator Petroleum and Natural Gas Regulatory Board (PNGRB) has been asked to resolve the apparent conflict of interest arising out of the fact that GAIL (India) Limited is both a transporter and marketer of natural gas. “The Central Executive Council (CEC) of GAIL Officers’ Association (GOA) met on March 24, 2018 at Noida to deliberate on the issue of unbundling of GAIL (India) Limited,” the Council said in a resolution, which it also conveyed to the Prime Minister’s Office. “The CEC noted with shock and anguish the news items circulating in the media which has quoted sources in the government that a decision has been taken to unbundle GAIL’s marketing and transportation business.”
“The move is aimed at preventing purported abuse of GAlL’s monopoly position and is meant to ensure an even and fair playing field for several other companies involved in natural gas business,” the resolution added.
GAIL’s businesses of trading and transportation are in compliance with the existing regulatory framework, and third-party access is given to all in a fair, transparent and equitable manner, the resolution went on to say. “In the entire history of the company, there has not been a single instance wherein GAIL has abused its position to deny any other company access to its infrastructure,” the Association said.
“Leading organisations such as RIL, lOC, BPCL, Adani Energy and big CGD companies like MGL, Mumbai and IGL Delhi continue to use GAIL’s infrastructure to serve their customers. To say, therefore, that the proposed unbundling is meant to prevent monopoly abuse of GAIL is incorrect and non-tenable.”
“We, as a forum, therefore lodge our protest against such unwarranted actions and request the authorities to maintain the status quo of GAIL... in order to achieve the benevolent objectives for which this company was formed in 1984,” it added.
Pipeline infrastructure
When asked in January about the Centre’s plan to unbundle GAIL, Petroleum Minister Dharmendra Pradhan had refrained from commenting on the unbundling, instead saying GAIL should focus on infrastructure and pipelines. “GAIL’s primary work has been prioritised as pipelines and marketing can be done by anyone, but a state-company should concentrate on infrastructure,” Mr. Pradhan had said. “We expect GAIL to make gas infrastructure in the country at a fast pace.”
“We, as a collective, request the government to ensure participation of people in policy formulation and openness in taking decisions because such unilateral action may lead to failure of performing gas company of government, which has not only become the youngest Maharatna, but has been delivering the objective of spreading use of natural gas throughout the country from more than three decades since its inception,” the Officers’ Association’s resolution said.
