(ET)
State-run GAIL will not be split but will have to hive off its transportation business into a subsidiary to reduce the conflict of interest that arises with the same entity housing both the functions of marketing and transport of natural gas, according to people familiar with the plans of the oil ministry. The ministry and the Petroleum and Natural Gas Regulatory Board have considered the idea of splitting GAIL for some time now, hoping to ‘unbundle’ marketing and transportation of natural gas in the country, a necessary condition for the development of a competitive gas market. But strong resistance from GAIL, which owns most of the gas pipelines in the country, appears to have dissuaded the ministry from breaking up the company.
