(MC)
GAIL India stock rallied 8 percent intraday on Friday after the Petroleum and Natural Gas Regulatory Board (PNGRB) put up a consultation document on unified pipeline tariff proposing a 60 percent hike in tariff by the company. “We have proposed PNGRB for unified tariff for all pipelines. This is a positive development for equitable growth,” Gajendra Sing, Director Marketing of GAIL .
He further said the company was looking at reasonable returns on pipeline and make further investments in the pipelines but he did expect tariffs to be very high. The proposal of unified tariff for GAIL’s pipelines is a move in the right direction, Rohit Ahuja of BOBCAPS said, adding any incremental tariff hike will directly add to net profit for the state-owned natural gas processing and distribution company. BOBCAPS said proposed tariff rate by PNGRB was 60 percent higher than current levels and proposed rate offers a massive 45 percent upside to company’s earnings.
