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GAIL

GAIL places order for 345 km Pipeline Laying Contract for- Jagadishpur- Haldia-Bokaro- Dhamra Pipeline

New Delhi, October 10th, 2016: GAIL has initiated a major step towards the construction of the Jagadishpur-Haldia-Bokaro-Dhamra Natural Gas Pipeline (JHBDPL), by approving placement of orders for pipeline laying work of 345 km from Phulpur to Dobhi under phase-IB at an estimated cost of Rs.306 crore under two sections to be executed simultaneously  by JSIW Infrastructure Pvt. Ltd. and IL&FS Engineering & Construction Co. Ltd.. Laying works under phase-IB shall commence by the end of October, 2016 and targeted to be completed by December, 2018.

In a historic development, Cabinet Committee on Economic Affairs approved Capital Grant of 40%, amounting to Rs. 5,176 Crores over 5 years, for the pipeline project, to be implemented by GAIL at an estimated capital outlay of Rs. 12,940 Crores. It is the first time ever that Central Government has approved capital Grant for a Natural Gas pipeline project.

On the development, Shri Dharmendra Pradhan, Hon’ble Minister for Petroleum & Natural Gas said- “Our Hon’ble Prime Minister has taken a clear and committed stand to move towards a cleaner fuel regime. It is a delightful moment for us as cleaner and greener energy path has been chosen for Eastern India that shall be affordably accessible to the masses.”

Post approval of the pipeline laying award contract under phase-I B, Shri B C Tripathi said“Pipeline and city gas projects under JHBDPL in Eastern India are a big step towards accomplishment of National development goals based on natural gas and the Company shall expeditiously work to execute the entrusted projects in tune with the Government’s objectives as per schedule.”

The first phase at a project cost of Rs 3,200 crore and will cover 755 km to cover Phulpur, Mani, Gorakhpur, Varanasi, Dobhi, Silao, Patna  and Barauni spread across various sections. Pipeline construction is already under progress along Gaya-Barauni–Patna section.

The 2,539 km long JHBDPL is scheduled for completion by December 2020 and will connect major cities and towns enroute for commencing piped natural gas to homes across UP, Bihar, Jharkhand, West Bengal and Odisha in addition to supplying feed gas to anchor fertilizer units at Gorakhpur, Barauni and Sindri.

The Line Pipes supplies against orders are expected to commence soon from- M/s Jindal Saw Limited, M/s MAN Industries (India) Limited, M/s Essar Steel India Limited and M/s Zhongyou BSS (Qinhuangdao) Petro pipe Co. Ltd, China.

The JHBDPL pipeline network shall serve to be the gateway for rapidly expanding natural gas based clean energy to Eastern India spanning across five States ushering a new era of growth and development with a potential to serve as a natural gas hub for the neighbouring Asian economies of Nepal and Bangladesh.

 

GAIL

GAIL releases its sixth Sustainability Report

“Nurturing Resilient Ecosystem” theme of the report for the year 2015-16

New Delhi, 23rd September, 2016: Shri B. C. Tripathi, Chairman and Managing Director, GAIL (India) Limited, today released the company’s Sustainability Report for the year 2015-16 on the theme ‘Nurturing Resilient Ecosystem’ in the presence of Shri M. Ravindran, Director (HR), Dr. Ashutosh Karnatak, Director (Projects), Shri Subir Purkayastha, Director (Finance) and other senior officials of the company.

While our previous Sustainability Reports highlighted our commitment and action-orientation to fulfill and achieve our targets, our Sustainability Report for FY 15-16 centred around the theme of ‘Nurturing Resilient Ecosystem’ is aligned with the theme of our Annual report FY 15-16. With the sixth edition of our Sustainability Report, FY 15-16, ‘Nurturing Resilient Ecosystem’ communicates our efforts to adapt while fostering a resilient ecosystem to prosper even in testing times while being responsible and committed to our stakeholders.

GAIL being a Public Sector company is guided by the principles of accountability and transparency, where ethical business conduct becomes even more imperative as our reach goes beyond our immediate stakeholders with expanding business operations.

This year’s Sustainability Report, ‘Nurturing Resilient Ecosystem’ marks the second year of our transition from GRI G3.1 to GRI G4 guidelines. The report is in line with GRI G4 Guidelines ‘in-accordance’ option core. With this report, GAIL availed the Content Index certified by GRI, Amsterdam for the second year consecutively. This report is a materiality centric report and also highlights initiatives taken for our stakeholders. The report highlights the positive actions taken within each material issue which been identified after a thorough materiality assessment and stakeholder engagement exercise which was conducted at various locations of GAIL amongst different stakeholder groups. All Sustainability Reports of GAIL have been assured by external third party. Continuing the practice, this year’s Sustainability Report has been assured by DNVGL. This is a Type 2 Moderate level assured report based on AA1000AS (2008) standard. Assurance process includes data verification at different sites of GAIL that will continue to help GAIL improve its processes and data management mechanisms.

Our Sustainability Report FY 15-16 has been uploaded on the date of GAIL’s Annual General Meeting i.e. 23rd September, 2016 for stakeholders to have access to non-financial data along with financial data of the organization. GAIL’s Corporate Sustainability Reports are publicly available on GAIL’s website (http://www.gailonline.com/final_site/Sustainability.html).

GAIL

32nd Annual General Meeting – Speech of Chairman & Managing Director

Dear Share Owners,

Thank You for joining us for the 32nd AGM. It is indeed a pleasure to extend you a warm welcome on this occasion.

Annual Report comprising audited Financial Statements and audited Consolidated Financial Statements for the financial year ending March 31, 2016 and Directors’ Report of the Company, have been circulated in advance and with your permission I consider them as read.

In the financial year that culminated, Your Company also worked towards increasing utilisation of pipeline capacity by engaging with multitude stakeholders to enlarge scope of natural gas in India’s energy basket. Challenges faced in marketing long-term LNG/RLNG portfolio due to decline in LNG spot prices were successfully resolved with upstream supplier, averting a payment crisis along the value chain. GAIL also stabilised commercial operations of the expanded capacities at the Pata petrochemicals unit.

Global narrative remained dominated around climate change imperatives with a consensus to rapidly scale-up renewable energy.

In this context I take this opportunity to rather share developments that encourage us to re-model our business operations for staying relevant.

agm-meet

Economic Perspective:

Global economy continues to struggle  with concerns of dwindling aggregate demand growth. A steady growth of economies could only be confirmed with moderation both in volatility and downward pricing pressure on commodities.

India has been maintaining momentum even in the midst of a stressed-up global macro environment. Key reforms led by GST implementation shall spur consumption led growth. Projections by diverse institutions indicate India is poised for a GDP growth of over 7.5% in the next fiscal year too.

 

Natural Gas Value Chain Outlook:

Government have been steadfast in expanding natural gas based economy. Numerous policy measures were initiated during the past one year for driving consumption of natural gas. The e-bid RLNG mechanism for power sector has ensured expansion of the market opportunity by over 6 MMSCMD. The need of utilising gas based power due to clean energy imperatives could be a key driver of growth for gas in the power sector.

The CGD companies are re-shaping business strategy to expand retail marketing of gas on the back of a gas allocation priority accorded by Government of India to the CNG and domestic PNG segments. Emphasis has been on rapidly expanding connectivity in Bengaluru, with state-of-the-art technologies being taken up on a priority, and the progress has been impressive. With augumentation of  gas supplies to Hyderabad City, the JV company operating in the region has renewed its efforts to improve connectivity across segments that potentially reside on its network. CGD companies in other metros have been gaining traction and I am happy to share that the IPO of Mahanagar Gas Ltd. has received an overwhelming response, reflecting immense confidence on the promoters’ earnest endeavours in nurturing these enterprises. Efforts under the sector have yielded an unprecedented volumetric growth of about 15% in natural gas consumption.  Given the emphasis and focus it is expected that the sector shall continue to maintain promising growth.

Before I go any further, I am glad to share with you that Your Company has been accorded by the Cabinet Committee of Economic Affairs (CCEA) on 21.09.2016, to undertake 2539 km long Jagadishpur-Haldia-Bokaro-Dhamra pieline project, along with the development of seven CGD projects at major locations enroute- Varanasi, Patna, Ranchi, Jamshedpur, Kolkata, Bhubaneswar and Cuttack by December 2020. This project will be undertaken at a cost of about Rs. 12,940 crore with an unprecedented support of Government of India by way of capital subsidy to the extent of 40% of the project cost. I am also happy to announce that an MoU with Dhamra Port for jointly developing an LNG terminal of 5 MMTPA capacity was signed on 21.09.2016 with GAIL’s capacity share at 1.5 MMTPA.

This is also to share with you that the Sabine Pass terminal has been commissioned earlier during the year and exports data suggest India being the third largest recipient of train 1 LNG cargoes. Based on the project schedules, India should be receiving its share of contractual cargoes from early 2018. GAIL is working towards charter hiring of ships in step with the LNG off -take schedule.

In the Gas Transmission business, the customers have a choice, depending on the type & source of gas, to either have contracts for end to end service through door delivery contracts or a-la-carte selection for shipping their gas volumes. This is akin to the international practice of commodity delivery services under DES/FOB etc., and is driven as per consumer choice and purpose.

GAIL has been actively involved in expanding its market share in the re-gas tolling capacity segment- i) by focussing on converting Dabhol terminal to an all-weather port with the break-water in place, ii) by way of engaging with the Government of Andhra Pradesh to shape Kakinada FSRU project into a reality by early 2018 and iii)  by joining Dhamra Port for developing re-gas capacity to feed RLNG into Jagdishpur-Haldia-Bokaro-Dhamra  pipeline from Eastern side.

The Natural Gas sector is  on the cusp of  an interesting era as more volumes  are expected to roll out under various types of contract structures of diversified indexes, re-gas capacities are doubling-up, pipelines are penetrating the Eastern and Southern parts of India and CGD networks are expanding on a pan-India basis within the next 3-5 years.

 

Petrochemicals:   

It is a matter of pride and privilege to share with you today, that the combined ethylene capacity operated by Your Company and its subsidiary is over 1 Million tonnes per annum and is the largest in India.

The segment is moving towards maintaining profitability despite  severe cut-back in domestic allocation of gas and innovative solutions of feedstock optimisation are being pursued to sustain profitable operations.

 

Profit Maximisation-‘Sanchay’:

It is also a pleasure sharing with you that the project ‘Sanchay’ that we initiated during last year has been yielding significant returns in focussed areas. Substantial gains are expected to accrue within the next 24 months under the identified areas.

 

Pipeline Revamp projects:

As shared with you, last year, the project progress of the various pipelines located at KG/Cauvery Basin and Gujarat are as per schedule. The 360 km aggregate pipeline revamp has significantly progressed in KG/Cauvery segments and are scheduled for completion by January 2017. The 450 km pipeline upgrades in Gujarat are expected to be completed by  FY 2017-18.

Your Company’s Board has also approved Vijaipur-Auraiya-Phulpur pipeline segment of 670 KM at an estimated cost of Rs. 4538 crore  which is planned for synchronisation with Jagdishpur-Haldia-Bokaro-Dhamra pipeline project.

The Jagdishpur-Haldia-Bokaro-Dhamra pipeline project is being developed with the support of Government of India to ensure the objective of developing fertilizer plants and a commercially sustainable gas based economy in Eastern India.

Efforts towards Digital GAIL:

Digital India has been a fundamental force shaping efficient delivery of services towards making GAIL a smart utility. In this endeavour, Your Company is harnessing digital power already embedded in the systems, by laying thrust on data analytics for speedier and efficient decision making in operations. Real time information dashboards for various functionalities have been deployed and business transactions have been enabled over secure mobile applications  to ensure speedier execution.

It gives me pleasure to share with you that under extensive R&D efforts, Your Company developed a satellite based application in collaboration with ISRO for pipeline surveillance, with imaging on high resolution formats. On need basis this facility shall be expanded over networks and even for pipeline route selection in future.

Even in the gas retailing/CGD side, Your Subsidiary Company,has pioneered installation of electronic meters with digital bill payment options as an ingredient for creating smart city environment in this sector.

 

Performance and Dividend:

The company grossed Rs. 51, 614 crore in topline and Rs. 2,299 crore in profit after tax in an overall challenging context of declining domestic gas availability, curtailed feedstock supply to petrochemicals production and dwindling demand for long-term gas volumes. Although downward pricing pressure and compression in segmental margins  have impacted profitability by about 24% on a year-on-year basis, the company’s Board has recommended a total dividend of 55% of the paid-up share capital to serve shareholder interests.

 

Corporate Governance:

GAIL has received for the 7th year in a row ‘NIL’ comments from the CAG for FY 2015-16. Your Company has always been proactive in upholding ethical standards across the enterprise in all its endeavours.

 

 

Winning Societies … CSR Way:

GAIL has  been recognised as the Leading PSU by Economic Times, in a study on “The Best Companies for CSR” published in October 2015, for its transformative ground work in improving lives of the under privileged, with an overall ranking of 7 among the country’s Top 10 Corporates. Your Company has touched over half a million lives through its various CSR development programmes. Our CSR program ‘Utkarsh’  has yet again delivered outstanding results with 94% of the candidates making it to top- ranked engineering institutes of the country, including the coveted IITs – the modern temples of higher learning.

Conclusion:

GAIL is re-positioning itself to cater to the changing needs of its consumers and is focussed on attuning itself to providing consumer centric services across the natural gas value chain.

 

Acknowledgement:

I am privileged to have the opportunity to thank you for your conviction and continued support to GAIL’s endeavours. I also extend my gratitude to the Central Government, MoPNG and State Governments for supporting and nurturing GAIL in its objectives of serving the Nation.

The year witnessed the Board being deeply engaged in shaping policy decisions for the growth of the company. I express my thanks to the dedicated team of Board members.

A dedicated and talented workforce has been a pillar of GAIL’s strength. I thank them for striving to create wealth for Stakeholders and in taking the company forward.

Thank You Ladies and Gentlemen.

GAIL’s first UNIPOL™ PE Process line starts operations in Pata

Will produce 400,000 TPA polyethylene, total capacity now 8,10,000 TPA

New Delhi, September 20, 2016: In a step towards realizing the ‘Make in India’ initiative of the Government of India, GAIL (India) Limited has successfully started its first UNIPOL™ PE Process line with the capacity to produce 400,000 tons of polyethylene (PE) per year. The total production capacity of GAIL’s Petrochemical plant at Pata, UP is now 8,10,000 tons per annum.

GAIL’s flexible High-density polyethylene (HDPE)/ Linear low-density polyethylene (LLDPE) swing plant provides access to a full range of resin applications which will allow GAIL and its customers to capture new market opportunities as PE market demands are changing.

The new process line gives GAIL the platform to expand its PE product capabilities, providing Indian PE converters with the high-quality, domestically-produced resin products needed for both large-volume markets as well as advanced performance applications.

Introduction of UNIPOL™ PE Resin products in the Indian market has started receiving positive feedback from customers. GAIL team at the project site appreciated the US-based Univation Technologies team for providing good support to the commissioning of the project right from the hook up and the start-up of the new plant.

About GAIL (India) Limited

GAIL (India) Ltd., is India’s principal Natural Gas Company with activities ranging from Gas Transmission and Marketing to Processing (for fractionating LPG, Propane, SBP Solvent and Pentane); transmission of Liquefied Petroleum Gas (LPG); production and marketing of Petrochemicals like HDPE and LLDPE and leasing bandwidth in Telecommunications. The Company has extended its presence in Power, Liquefied Natural Gas (LNG) re-gasification, City Gas Distribution and Exploration & Production through equity and joint venture participations. GAIL owns and operates a network of about 11,000 km of Natural Gas high pressure trunk pipeline with a capacity to carry 206 MMSCMD of natural gas across the country.

GAIL is one of the leading public enterprises with a consistently excellent financial track record. The Company recorded a turnover of Rs. 51,614 crore and Profit After Tax of Rs. 2299 crore in the financial year 2015-16.

GAIL

GAIL’s Profit after Tax up by 244% for Q1 of FY 2016-17 on year-on-year basis PBT Rs. 1,686 crore up by 180 %; Gross Margin Rs. 2,199 crore up by 95%

New Delhi, September 7, 2016: GAIL (India) Limited registered a 244% increase in Profit after Tax (PAT) in the first quarter of Financial Year 2016-17, boosted by a turnaround in its Petrochemical business and partial sale of stake in Mahanagar Gas Limited. The company’s PAT rose to Rs. 1,335 crore from Rs. 388 crore in the corresponding quarter of the last fiscal. GAIL’s PAT excluding gain from stake sale in Mahanagar Gas Limited is Rs 846 crore, signifying an increase by 118%.

GAIL’s Profit before Tax (PBT) for the first quarter increased by 180% to Rs. 1,686 crores against Rs. 602 crore in the corresponding quarter of the last fiscal.

GAIL’s PAT in the first quarter of FY 2016-17 rose by 70 % vis-à-vis the previous quarter (Q4 FY 2015-16), from Rs. 785 crore to Rs. 1,335 crore.

During the quarter, GAIL’s Petrochemical business has seen a turnaround with production and sales jumping 149% and 121% respectively as compared to corresponding period of the previous year. This resulted in revenue increase in this segment by 95% to Rs. 1,133 crore and the profit stood at Rs. 9 crore in this quarter as against loss of Rs. 397 crore in the corresponding period of the previous year.

The increase in net profit during Q1 of Financial Year 2016-17 was also supported by increase in Natural Gas sales and transmission volumes which increased by 15% and 10% respectively.

GAIL

GAIL extends financial support to Asmita for gymnastics

New Delhi, August 29, 2016: As a quick response to the call for financial support to Ashmita, the next promising gymnast from Agartala, Tripura,  GAIL has announced an immediate grant for an amount of Rs. 2,00,000/- and a  monthly scholarship of Rs.20,000 per month for the next two years, to meet her training and nutritional requirements.   GAIL has come forward to support Ashmita’s cause after a leading media channel today reported Ashmita’s story and her journey of grit and glory despite her impoverished background.

Ashmita’s father is a daily wager, her mother a domestic help in Agartala and lives in a crammed dwelling with just four walls and a tin roof. But she defied the odds, fighting her way into the national team, representing India at the World School championships in Turkey.

Ashmita is being billed as the next Dipa Karmakar of India. 15-year-old Ashmita dreams of an Olympic medal much like her hero Dipa.

GAIL

GAIL and Bloom Energy partner to power India with Clean and Reliable Energy

New Delhi, August 22, 2016: GAIL (India) Limited and Silicon Valley-based Bloom Energy today announced a new partnership to transform India’s energy future through the use of innovative technology and signed a Memorandum of Understanding (MoU) to deploy revolutionary natural gas-based fuel cell technology to generate electricity.

In the presence of Hon’ble Minister of State for Petroleum & Natural Gas, Shri Dharmendra Pradhan, the MoU was signed by Shri B C Tripathi, C&MD, GAIL (India) Limited and Dr. K R Sridhar, CEO and Founder, Bloom Energy. CEO, Niti Aayog, Shri Amitabh Kant and Additional Secretary, MoPNG, Shri A P Sawhney also graced the occasion.

The technology is presently being used by over 100 of the Fortune 500 companies that are diversified majors in FMCG, IT, Telecom, Retailing and e-commerce. The state-of-the-art solid oxide fuel cell (SOFC) technology of Bloom Energy Servers convert fuel into electricity using Natural Gas as the base fuel to generate reliable and resilient electricity in a highly efficient non-combustible process that reduces emissions of greenhouse gas and harmful air pollutants, with minimal use of water vis-à-vis the conventional power producing technologies. The Bloom Energy Servers could be installed onsite at any operating premises or building and can be plugged into natural gas pipeline to generate uninterrupted, efficient, noise-less base load power round-the-clock.

GAIL (India) Limited signs MoU with Bloom energy in presence of Shri Dharmesh Pradhan

GAIL’s subsidiary at Bengaluru is already supplying Natural Gas for energizing a multi-MW Bloom Energy project for a large global technology company at the Technology Park in Bangalore.

The unique tie-up seeks to leverage the strengths of both the organizations. Whilst GAIL brings a portfolio of Natural Gas to ensure reliable and competitively available Natural Gas for Bloom Energy projects along its integrated gas supply networks, Bloom Energy’s power systems run on advanced solid oxide fuel cell technology that are not just acknowledged as the most efficient producers of electricity based on Natural Gas but also combines the advantage of requiring a tenth of the space required for generating equivalent power through other modes. The MoU provides an alignment of a shared vision between GAIL and Bloom Energy and opens up an opportunity for Indian consumers to experience bundled and reliable service by the two leading brands for expanding the distributed power generation systems in India.

Speaking on the occasion, Hon’ble Minister of State for Petroleum and Natural Gas (I/C) Shri Dharmendra Pradhan said “The signing of the MoU between Bloom Energy and GAIL is a significant step towards realizing the Hon’ble Prime Minister’s vision of using technology and innovation for fast tracking India’s progress. The biggest beneficiary of this MoU will be urban India because it will significantly decrease pollution caused by back up power generation.”

Hon’ble Minister of State for Petroleum and Natural Gas (I/C) Shri Dharmendra Pradhan,  speaking at the occasion.

Hon’ble Minister of State for Petroleum and Natural Gas (I/C) Shri Dharmendra Pradhan, speaking at the occasion.

Shri Amitabh Kant, CEO, Niti Aayog described the Bloom technology as “pathbreaking” which can bring a “transformational change” in electricity generation.

Speaking on the occasion, Shri B C Tripathi said, “GAIL and Bloom Energy have a tremendous opportunity to transform India’s energy future run on the combination of natural gas – cleanest and dependable fossil fuel and the state-of-the-art power technology of Solid Oxide Fuel Cell by Bloom Energy. This is in a unique positioning in the Indian market to deliver clean, reliable, and affordable power requiring minimal space and time to set-up. A perfect solution to India’s fast growing energy needs.”

Bloom Energy’s CEO and founder, Dr K R Sridhar, said “It is an honour to be here today and mark this occasion; we applaud the Hon’ble Minister of State Mr Dharmendra Pradhan and GAIL for taking a leadership role in driving towards a new energy future for India. This partnership brings us closer to realizing Bloom Energy’s mission to provide access to clean, reliable and affordable energy for India and the world.”

About GAIL

GAIL is India’s leading natural gas company with diversified interests across the natural gas value chain of trading, transmission, LPG production & transmission, petrochemicals, city gas, E&P etc. It operates a pipeline network of over 11,000 km with a capacity of about 210 million cubic meters per day. GAIL commands 75% market share in gas transmission and has a Gas trading share of over 50% in India. It also has a growing international presence through subsidiaries in the USA and Singapore.

About Bloom Energy

Bloom Energy is a provider of breakthrough solid oxide fuel cell technology generating clean, highly efficient onsite power from multiple fuel sources.  Founded in 2001 with a mission to make clean, reliable energy affordable for everyone in the world, Bloom Energy Servers are currently powering a “who’s who” list of electric utilities, government organizations and over 100 leading global companies including Apple, Google, Coca-Cola, Bank of America, Walmart and FedEx in the United States.  Bloom has received numerous recognitions in the field of distributed power generation including from the World Economic Forum, Time Magazine, 60 Minutes and most lately, Bloom has been named a top “disruptor” for the last two years in a row by CNBC. The company is headquartered in Sunnyvale, California with operations in Newark, Delaware, Bengaluru and Mumbai.

Caption for Pic 1: (from left to right) Bloom Energy CEO, Dr K R Sridhar, Hon’ble Minister of State for Petroleum & Natural Gas, Shri Dharmendra Pradhan, GAIL Chairman & Managing Director, Shri B C Tripathi and Additional Secretary, MoPNG Shri A P Sawhney after the signing of MoU between GAIL and Bloom Energy to deploy natural gas-based fuel cell technology to generate electricity.

Caption for Pic 2: Hon’ble Minister of State for Petroleum & Natural Gas (I/C), Shri Dharmendra Pradhan (left) speaking after the signing of MoU between GAIL and Bloom Energy to deploy natural gas-based fuel cell technology to generate electricity. Also in the picture from (second left to right) are Bloom Energy CEO, Dr K R Sridhar, CEO of Niti Aayog, Shri Amitabh Kant, GAIL Chairman & Managing Director, Shri B C Tripathi and Additional Secretary, MoPNG, Shri A P Sawhney.

Disclaimer: This communication is confidential and privileged and is directed to and for the use of the addressee only. The recipient, if not the addressee, should not use this message if erroneously received as access and use of this e-mail in any manner by anyone other than the addressee is unauthorized. The recipient acknowledges that GAIL (India) Limited may be unable to exercise control or ensure or guarantee the integrity of the text of this email message and the text is not warranted as to completeness and accuracy. Though GAIL (India) Limited has taken reasonable precautions to ensure no viruses are present in this e-mail, however, it cannot accept responsibility for any loss or damage arising from the use of this email or attachments.

GAIL

INDIA GEARS UP FOR CNG IN TWO WHEELERS

GAIL (India) Limited

INDIA GEARS UP FOR CNG IN TWO WHEELERS

Shri Dharmendra Pradhan & Shri Prakash Javadekar launch Pilot Programme

Project supported by IGL and GAIL

New Delhi, June 23, 2016: In a major step to curb rising air pollution in Indian cities, Shri Dharmendra Pradhan, Hon’ble Minister of State (Independent Charge), Petroleum and Natural Gas and Shri Prakash Javadekar, Hon’ble Minister of State (Independent Charge), Environment, Forest & Climate Change launched first of its kind Pilot Programme in the country to run two wheelers on Compressed Natural Gas (CNG) here today in the presence of Smt. Meenakshi Lekhi, Hon’ble Member of Parliament, Dr. Bhure Lal, Chairman, EPCA, Shri B.C. Tripathi, CMD, GAIL (India) Ltd., Shri Ashutosh Jindal, Joint Secretary, Ministry Of Petroleum & Natural Gas, Shri E.S. Ranganathan, Managing Director, Indraprastha Gas Limited (IGL), officials and media persons.

CNG 2 wheeler scooties

Being implemented by Indraprastha Gas Limited (IGL), India’s largest CNG distribution company and one of its parent company, GAIL (India) Limited, the Pilot Programme will involve 50 CNG retrofitted two wheelers. Of these, the first batch of ten CNG retrofitted two wheelers were flagged off by the dignitaries at IGL’s CGO Complex CNG Station.

Shri Dharmendra Pradhan, Hon’ble Minister of State (Independent Charge), Petroleum and Natural Gas addressing the media

Shri Dharmendra Pradhan, Hon’ble Minister of State (Independent Charge), Petroleum and Natural Gas addressing the media

Speaking on the occasion, Shri Pradhan said there are 55 lakh two wheelers in the national capital alone and this Pilot Programme will serve as small but vital step in the fight against pollution. He said the CNG-run two wheelers will not only emit 75 % lesser hydrocarbons as compared to petrol-driven models but would be more economical to run. Welcoming the initiative of Indraprastha Gas Limited (IGL), Shri Pradhan said that the Government is pro-actively striving to promote clean fuel in the country. He said that the Government is promoting the use of gas in the country, thereby providing a better lifestyle to the people and also fulfilling the COP-21 commitments to curb pollution. Shri Pradhan said that the Gas share in the country’s fuel basket is just 7% compared to world average of around 24%. Describing the pilot programme to run two wheelers on CNG as historic, he said that after evaluating its experience, it will be expanded very fast.

Speaking on the occasion, Shri Prakash Javadekar said that the Government is fully committed to control pollution in the country, and for this purpose, there will be a jump from Euro-IV type fuel to Euro-VI by 2020. He said that Environment Ministry will fully support the endeavours to promote clean fuel, including Gas. The Minister said that the launch of pilot phase of the project for CNG kit in two-wheelers will have a far-reaching implication in reducing pollution.

Mrs Meenakshi Lekhi congratulated the Ministry of Petroleum and Natural Gas for converting a corporate oriented ministry to a welfare oriented one. She said that pilot project is a sign of growing India-Iran cooperation, as the Iranian kits have been used for retrofitment.

Earlier, welcoming the guests, Shri B.C. Tripathi said the technical and commercial feasibility of CNG-run two wheelers would be explored during the Pilot Programme before commercialization. The performance of the two wheelers and the feedback of the drivers would also be taken into account, he said adding the initiative may also be extended to Bengaluru and Pune in due course.

While delivering vote of thanks, Shri E.S. Ranganathan shared that IGL had been asked by Ministry of Petroleum & Natural Gas and GAIL (India) Limited to find a city specific solution to the rising pollution levels in the capital. He added that this is just the first step and IGL would be working towards developing a road map of introduction of CNG in other two wheelers like motorcycles also. He reiterated the commitment of IGL towards expanding its CNG refueling infrastructure to meet the increasing demand.

Shri Dharmendra Pradhan, Hon’ble Minister of State (Independent Charge), Petroleum and Natural Gas and Shri Prakash Javadekar, Hon’ble Minister of State (Independent Charge), Environment, Forest & Climate change, Smt. Meenakshi Lekhi, Hon’ble Member of Parliament, Dr. Bhure Lal, Chairman, EPCA, Shri B.C. Tripathi, CMD, GAIL (India) Ltd., Shri Ashutosh Jindal, Joint Secretary, Ministry Of Petroleum & Natural Gas, Shri E.S. Ranganathan, Managing Director, Indraprastha Gas Limited (IGL),

The project is inspired by the ‘Hawa Badlo’ initiative which is a people’s initiative to fight air pollution backed by GAIL and city gas distribution companies. As part of the movement, a number of awareness drives have been carried out regarding the fight against air pollution. ‘Hawa Badlo’ also supports research initiatives in this regard, of which the CNG retrofitted two wheeler programme is a part.

Fifty scooters shall be retrofitted with CNG kit manufactured by M/s ITuk Manufacturing India Pvt. Ltd in the pilot phase. The type approval of the CNG kit has been taken from Automotive Research Association of India (ARAI) as well as Transport Department, Govt. of NCT of Delhi. The approvals of all Components, parts and assemblies in the kit, as applicable, have been obtained from Automotive Research Association of India (ARAI), International Center for Automotive Technology (ICAT) and Petroleum and Explosives Safety Organization (PESO). The retrofitment in vehicles has been undertaken in a centre authorized by Transport Department, Govt. of NCT of Delhi.

As per idle emission test, the hydrocarbon emissions from CNG retrofitted two wheelers are 75% lesser and CO emissions are 20% lesser as compared to petrol driven similar models.

The CNG kit for two wheelers comprises two CNG cylinders of 4.8 litre water capacity each, which can be filled with up to 1 kg of CNG in each cylinder. These CNG retrofitted two wheelers can drive upto 120 kms in a single fill and are expected to be substantially economical as compared to a similar petrol run vehicle at the current level of prices as per the kit manufacturer.

The performance of CNG retrofitted two wheelers would be closely monitored in terms of efficiency, emissions, etc. during the pilot phase by all the stakeholders and the learning from this project would be used to develop the road map for introduction of CNG in two wheeler segment across the nation.

The role of CNG in curbing alarmingly high pollution levels in the capital during first decade of this century has been acknowledged world over. However, there has also been a major increase in the vehicular population in Delhi. While the entire public transport in the city has been mandated to run on CNG by Hon’ble Supreme Court of India, around 5 lakh CNG powered private cars are also running in the city and their numbers are increasing due to increased environmental awareness as well as economics in favour of CNG.

IGL has been augmenting its CNG refueling infrastructure to commensurate with increasing demand in its geographical areas of operation. A record number of 92 new CNG filling facilities have been set up by IGL in the region during first five months of the year between January and May 2016 thereby taking the number of CNG fuelling facilities of IGL to 414.

GAIL

55 GAIL supported students make it to the IITs

  • 94 students qualified the IIT Mains Examination
  • As on date, a total of 414 GAIL Utkarsh students have successfully secured admissions in engineering institutions of repute
  • 180 of these students are currently employed in different organisations, across the country

New Delhi, June 13 2016. 55 students, trained under GAIL (India) Ltd’s CSR initiative Utkarsh Super 100, have cracked this year’s JEE Advance Examination. Executed through its implementing partner, CRSL, GAIL’s Utkarsh Super 100 provides intensive residential coaching and mentoring to students from economically weaker backgrounds, for a period of 1 year. The training is offered free-of-cost to ensure that poor, meritorious students, selected through a diligent process of written test and interview under the academic guidance of Shri Abhayanand (IPS retd.), Ex-DGP, Bihar and Co-founder of Super 30, Patna, benefit from the initiative.

Launched in 2009, GAIL’s Utkarsh Super 100 has successfully nurtured and transformed the lives of 414 students and by extension, their families, helping them secure admission in reputed engineering institutions. This initiative has witnessed many an inspiring story of talented children, coming from extremely humble homes of daily wage labourers, farmers, vegetable sellers,  security guards etc., from various districts of UP and MP, realizing their dreams. Having completed their studies, most of them are now placed in reputed organisations and are a part of the India growth story.

With a success rate of over 87%, GAIL Utkarsh Super 100 is delivering excellent result year after year and intends to continue nurturing talent from the weaker sections of the society, bringing them into the mainstream narrative.

GAIL

GAIL ‘spuds’ another exploratory well in Cambay Basin

New Delhi, May

New Delhi, May 30, 2016: GAIL (India) Limited has started drilling its second Exploratory Well as Operator in the NELP-IX Block CB-ONN-2010/11 in Cambay Basin. The well is situated in Nabhoi Village, in Tarapur Tehsil of Anand District in Gujarat and the “spudding” operations started on May 27, 2016. The first well was spud in this block on March 27, 2016. Drilling of target depth of 2200 meters of this well is scheduled to be completed in 30 to 35 days.

 

GAIL is the Lead Operator of the block with 25% participating interest. Other partners in this block are Bharat Petro Resources Limited (BPRL), Engineers India Limited (EIL), Monnet Ispat Energy Ltd. (MIEL) and Bharat Forge Infrastructure Limited (BFIL). The consortium will drill eight exploratory wells in the initial Exploration Phase as per minimum work commitment of Production Sharing Contract (PSC).

GAIL Spudding operations

Photo caption: Shri M Ravindran, Director (Human Resources & Business Development), GAIL (2nd from right) at the spudding ceremony of the second Exploratory Well in Cambay Basin.

 

GAIL

GAIL’s Profit Before Tax up by 68% for Q4 of FY 2015-16 on year on year basis PAT up 51 % to Rs 770 crore; Gross Margin up 60 % to Rs 1,444 crore

New Delhi, May 25, 2016: GAIL (India) Limited registered a 68 % increase in its Profit Before Tax (PBT) in the fourth quarter of Financial Year 2015-16 as it rose to Rs 940 crore from Rs 558 crore in the corresponding quarter of the last fiscal. GAIL’s Profit After Tax (PAT) for the fourth quarter also increased by 51% to Rs 770 crore against Rs 511 crore in the corresponding quarter of the previous year.

GAIL’s PAT was also up in the fourth quarter by 16 % from Rs 664 crore to Rs 770 crore over third quarter of this financial year.

The increase in net profit during Q4 of Financial Year 2015-16 as against the corresponding period of the last year was mainly due to increase in Natural Gas sales and transmission volumes. During the quarter, revenues from Natural Gas transmission business increased by 11% to Rs 1,028 crore as against Rs 926 crore in the corresponding period of the previous fiscal.

Natural Gas sales stood at 74.41 MMSCMD, an increase of 8% over corresponding quarter of previous year. The Natural Gas transmission during the fourth quarter of the current financial year was 95.31 MMSCMD, an increase of 11% from 86.15 MMSCMD in the corresponding period last year.

Year on Year performance

GAIL’s turnover (net of excise duty) in FY 16 stood at Rs 51,614 crore as against Rs 56,569 crore in the last financial year. The Profit Before Tax during 2015-16 was Rs 3,173 crore as against Rs 4,284 crore in the previous year, while Profit After Tax was Rs 2,299 crore as against Rs 3039 crore in the previous year.

Revenues from Natural Gas transmission business was higher by 19% to Rs 3,992 crore as against Rs 3,349 crore in the last year. Revenues from LPG transmission also rose 10% to Rs 486 crore as against Rs 441 crore earlier. Natural Gas transmission remained steady of around 92.09 MMSCMD while Natural Gas sales were 73.67 MMSCMD, a slight increase from 72.07 MMSCMD earlier.

The decrease in net profit during the current financial year was mainly due to lower price realization of Petrochemicals and Liquid Hydrocarbons along with higher interest and depreciation cost due to capitalization of Petrochemical Plant at Pata (UP) and Vijaipur (MP).

GAIL

GAIL reinforces its pipeline operations in K G Basin


Rajahmundry, 19th April 2016
:  GAIL (India) Limited has completed the first phase of replacement of different sections of the pipeline in the KG Basin regional pipeline network with an investment of more than Rs. 419 crore such as Tatipaka- Chinchinada pipeline section of 20 Km, Tatipaka- Kakinada pipeline section of 74 Km main line, Tatipaka – Kakinada HDD section of the pipeline including Taipaka – K Cheruvu of 4.8 Km length.  Work already started in the second phase for replacement of about 183 Km long pipelines with an additional cost of approximately Rs. 515 crore. This exercise is undertaken to ensure pipeline health and safety measures in view of the aging of the pipelines, types of the gases handled by the pipeline, change in population Density and degradation of pipelines as observed through cathodic protection system and intelligent pigging reports.  In addition to the replacement of the pipelines installation of additional facilities like slug catcher, knock out drums/ scrubbers, gas de-hydration Units are installed / being installed based on the expert reports in the network. GAIL has already invested an amount of Rs. 90 crore towards repairs and maintenance of the pipeline network and a total of Rs. 9.00 crore on relief and rehabilitation programme in last one year.

The unfortunate incident at Nagaram Village in Tatipaka- Kondapalli region on 27th June 2014 propelled GAIL to take fresh stock of its pipelines and installations in KG basin with respect to integrity, safety and reliability and various measures have been taken since then by the Company for upgradation and strengthening of pipeline network.   As per the expert opinion taken from the third party, the quality of gas needed qualitative improvement and installation of devices to improve the health of pipeline for transmission of natural gas sourced from the Upstream Operator in the KG basin network of Tatipaka – LANCO and Tatipaka – Kakinada pipeline sections. Upstream operator in this section has since then progressively installed gas corrosion inhibitor injection for supply of natural gas through the pipeline transmission system. GAIL owns a total of 933 Km of pipeline in the KG Basin network and 617 Km of pipelines are presently under operation, supplying 5.2 MMSCMD of Natural gas to the majority of customers including a few major ones like NFCL, GVK, Lanco, APGPCL, SPGL etc.  GAIL receives the same quantity of natural gas from ONGC, RIL and Cairn Energy.

Post incident, intelligent pigging for 617 Km of running pipelines is completed. In-line Inspection carried through intelligent pigging for 365 Km network is already completed and fresh work for 232 Km of the inline inspection is in progress. For monitoring the health of non-piggable pipelines, long range ultrasonic thickness survey is completed to measure the thickness of the pipeline besides continuous potential logging and direct voltage gradient survey of pipeline to monitor external corrosion.

Gas De-hydration Units (GDUs) at five locations like Mori, Pasarlapudi, Narsapur MP, Mandapeta and Gopavaram are installed and GDU for four more locations such as Kesenapalli (West), Enamuru, Tatipaka and KPDA are ordered. One GDU by ONGC off shore is in awarding stage. Fortnightly and monthly cleaning and pigging is being done and residue analysis is being carried out at external labs. All mainline valves are remotely controlled and leak detection system is in place besides liquid separators at source points of the pipeline. Electric Resistance (ER) probes / corrosion coupons are installed in all critical pipelines. Internal corrosion rate is within acceptable limits. Pipe to Soil potential for coating integrity of the pipeline is within limit. Regional Gas monitor Centre (RGMC) at Rajahmundry monitors all transformer rectifier units data with redundant energy back- ups to serve the power requirement of all the installations.

Daily foot patrolling with GPS tracking is being done by dedicated foot patrollers in order to ensure safety and security of the KG Basin pipeline networks and abnormalities observed is immediately informed to RGMC for corrective actions. The initiative has given a desired result. It has acted as an early warning mechanism for any possible disruptions in transportation of the gas and also has enabled in avoiding possible major accidents by ensuring the public safety. An endeavor of spreading awareness to farmers / villagers along the ROU is being carried out by the foot patrollers who also distribute pamphlets explaining the same to the neighborhood dwellers. Daily foot patrolling has not only helped in getting the timely information about encroachments/ leak / exposures, but also has acted as an extended hand of GAIL to spread the pipeline safety awareness in the local populace. GAIL has undertaken awareness drive by using audio clip in FM radio and also conducted awareness programme for police and revenue officials in all the three districts. A local form of Nukkad natak, Burrakatha has conducted 235 out of 300 villages for creating awareness of GAIL pipeline operations with do’s and don’ts.

All the vulnerable locations are being monitored daily. Fortnightly quality of natural gas such as H2S, CO2 and Dew Points are carried out besides, installations of 06 source points’ online moisture analysers. SCADA and communications system is strengthened with back up connectivity and RTU availability. Emergency Response Vehicle with all firefighting gadgets of natural gas is deputed for keeping a vigilant eye for any emergency situations like gas leak redressal in this region. In nutshell, the KG Basin pipeline network is being operated with utmost attention to safety and integrity and compliance of the provisions of the PNGRB guidelines.