Indian Oil Corporation's gas pipelines to be part of proposed GAIL arm.

The government is likely to carve out a separate gas transportation company that will hold the existing natural gas pipelines of both GAIL India and Indian Oil Corporation (IOC). The newly formed company will be a fully-owned subsidiary of GAIL.

The Ministry of Petroleum and Natural Gas has already floated a Cabinet note for inter-ministerial consultation on the creation of a new gas transmission operator. “According to the plan, GAIL will have to pay the book value for the existing natural gas pipelines of IOC.

BS