GAIL’s pipelines first on block under National Monetization Pipeline
- ByAyushi Ray | September 3, 2021
GAIL’s pipelines first on block under National Monetization Pipeline. The government’s ambitious ₹6 lakh crore monetization programme will be kicked off by leasing out more than 2,229km of gas pipelines of GAIL (India) Ltd to the private sector, a person directly aware of the development said. The government has already begun appointing investment advisers for the proposed transaction, and several domestic and foreign investment banks have submitted initial interests. The plan is to monetize these assets by floating an infrastructure investment trust (InvIT), a collective investment vehicle where investors can put in funds and earn a portion of the income as returns.
Finance minister Nirmala Sitharaman on August 23 unveiled plans to raise ₹6 lakh crore between FY22 and FY25 by leasing several assets to the private sector as part of a National Monetization Pipeline, or NMP. According to the person cited above, the government believes that of all the assets headed for monetization, GAIL’s pipelines have the strongest demand from private investors at the moment. In a recent presentation, government think tank NITI Aayog said GAIL has contributed to the growth and development of natural gas pipeline infrastructure and natural gas market and has an existing gas pipeline network of 13,389km, with a capacity of 204 million standard cu. m per day
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