GAIL, the pioneer of city gas distribution in India, took many initiatives to provide natural gas as an alternative fuel to various categories of customers, mainly the transport sector, to add¡ress rising pollution levels. Pilot projects were launched in early 1990s in two metropolitan cities, Delhi and Mumbai, along with the city of Vadodara. After establishing eco-friendly compressed natural gas (CNG) as the best alternative to the polluting conventional fuels, GAIL took up CGD projects on a large scale spreading throughout the entire cities by forming joint venture companies Indraprastha Gas Limited (IGL) and Mahanagar Gas Limited (MGL) for Delhi and Mumbai respectively. Based on the success of IGL and MGL, GAIL set up six more joint venture companies for CGD projects in various cities, viz., Bhagyanagar Gas Limited in Andhra Pradesh; Avantika Gas Limited in Madhya Pradesh; Central UP Gas Limited & Green Gas Limited in Uttar Pradesh; Maharashtra Natural Gas Limited in Pune, Maharashtra and Tripura Natural Gas Company Limited in Tripura. This induced other entities also to venture into CGD projects and thus a competitive era in this field evolved.
In the competitive environment, a planned and dedicated approach, energy and focus were required in order to maintain GAIL's leading position in CGD projects. This necessitated the formation of a new establishment of GAIL, dedicated to CGD projects and thus GAIL Gas Limited came into being.
GAIL Gas Limited has been authorised by the Petroleum and Natural Gas Regulatory Board (PNGRB) for implementing city gas distribution projects in Dewas (Madhya Pradesh), Kota (Rajasthan), Sonepat (Haryana), Meerut (Uttar Pradesh), Vadodara (Gujarat) and Taj Trapezium Zone (Uttar Pradesh) except Agra and Mathura.
The company is endeavouring to significantly increase the gas supplies to various consumer segments. It is expeditiously developing piped natural gas and compressed natural gas infrastructure in its areas of operation and pursuing opportunities in downstream gas distribution. In line with the corporate objective to expand the downstream gas distribution networks, GAIL Gas has also formed or in the process of forming joint ventures to pursue gas opp¡or¡tunities in Kerala, Andhra Pradesh, Karnataka, Vadodara (Gujarat), Rajasthan, etc. GAIL Gas along with its joint ventures plan to make its presence in the downstream sector on a pan-India basis.
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