State-run GAIL (India) Ltd is looking at a combined capital expenditure (capex) of around INR 28,000 crore by 2024. The company, while announcing its fourth quarter (Q4) results for the period ending Mar ’21, said expansion plans worth INR 7,000 crore in 2021-22, INR 12,000 crore in 2022-23 and INR 9,000 crore in 2024 are on the anvil.
In addition, GAIL expects 6-8% growth in its pipeline business over the next three years on the back of new additions of fertiliser plants and refineries.
Co to monetise two pipelines:A proposal to bifurcate state-owned gas utility GAIL (India) Ltd has been scrapped for now, and instead the company will monetise some of its pipelines by selling a minority stakes through Infrastructure Investment Trusts (InvITs).
GAIL, CMD, Manoj Jain, said at the investor’s call today, 10 Jun ’21, “The company has sent a plan for monetising two of its pipelines to the Ministry of Petroleum and Natural Gas and an Infrastructure Investment Trust (InvIT) is possible within the current fiscal if approvals come soon.”
Two major pipeline inaugurations:
- The Kochi-Mangalore pipeline project of 450 kilometres (kms) was inaugurated by the Prime Minister on 5 Jan ’21.
- The Dhobi-Durgapur gas pipeline project of 350 kms was inaugurated by the Prime Minister on 7 Feb ’21.
Projects of 1,000 km commissioned in FY ’21:GAIL commissioned about 1,000 kms of pipeline projects during FY ’21. In addition to this, the company commissioned the 175 kms Mirzapur pipeline last year.
Current projects:In the pipeline sector, GAIL is executing 71 projects (big and small) at an estimated investment of INR 47,500 crore.
Focus on eight pipeline projects:The company is executing eight pipeline projects under the National Gas Grid, totalling a length of about 7,500 kms at a cost of INR 36,400 crore. GAIL, being a part of the National Gas Grid, also has three 7,500 kms pipeline projects in hand for execution at a capex of INR 37,000 crore.
The 3 pipeline projects are as follows:
- The Srikakulam-Angul Pipeline(SAPL) project of 744 kms worth INR 2,700 crore to be completed by Jul ’22.
- The Jagdishpur-Haldia and Bokaro-Dhamra Pipeline(JHBDPL) project of 253 kms of value INR 1,200 crore to be completed by Nov ’22.
- The Mumbai-Nagpur-Jharsuguda Natural Gas Pipeline project of 1,755 kms with an investment of INR 7,800 crore to be completed by May ’23.
Work on the above projects are in progress in order to bring India’s north-east within the pipeline network. Also, it may help in achieving the Government of India’s target to increase the national gas share in the energy basket to 50%.
GAIL CMD Jain said, “For the Urja Ganga gas pipeline project, the total commitment is of INR 14,700 crore and the actual capex is INR 11,300 crore. Furthermore, the total capital grant received by the government as on date is INR 4,487 crore.”
PAT jumps 28%:GAIL registered a 28% sequential increase in profit after tax (PAT) to INR 1,908 crore in Jan-Mar ’21 compared to INR 1,487 crore in the preceding three months.
However, the company reported a decline of 26% in PAT in FY ’21 to INR 4,890.18 crore, as against INR 6,620.63 crore in FY ’20, SteelMint learned from the company’s exchange filing.
Turnover:The company reported a turnover of INR 15,472 crore in Q4 FY ’21 as against INR 15,386 crore in Q3 FY ’21, up by a marginal 1% quarter-on-quarter (q-o-q).
Meanwhile, the company’s turnover plummeted 20% in FY‘21 to INR 58,742 crore.
The operations of the plant and pipelines were stable and no major shutdown took place during FY ’21.
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