1. INDUSTRY STRUCTURE
1.1 Global Economy & Geopolitical Events
The global economy in CY 2024 exhibited moderate and uneven growth amidst tightening financial conditions, geopolitical tensions and structural shifts. According to the IMF World Economic Outlook1 (April 2025), global real GDP grew at 3.3% in CY 2024, with global output estimated at USD 110.55 trillion. This growth remained below the prepandemic average (~3.8%) due to subdued trade, elevated debt levels and delayed private investment recovery. The share of absolute GDP for CY 2024 (in current prices) is indicated in Figure-1.
Amongst major economies, emerging and developing Asia remained the primary growth engine, contributing over two- thirds of global growth, led by:
• India: GDP growth of ~ 6%, with nominal GDP reaching approx. USD 4.19 trillion2, overtaking Japan to become the fourth largest economy, supported by domestic consumption and public investment.
• China: Grew at ~5%, contributing significantly despite structural slowdown.
• Other key contributors: Germany, Japan and select oil-exporting nations such as Saudi Arabia and UAE, buoyed by higher oil and gas revenues.
Geopolitical instability continued to influence trade and energy dynamics: •
• The Russia-Ukraine conflict entered its third year, reshaping gas trade flows and reinforcing Europes pivot away from pipeline gas towards LNG, including US, Qatari and African supplies. The chart3 in Figure-2 shows the diminished gas supply to Europe from Russia and increased US LNG imports since the beginning of the Russia-Ukraine crisis.
• The Red Sea and Suez Canal crisis, driven by maritime security threats, impacted LNG cargo transit times and shipping costs, particularly for US LNG - Asia shipments, Russia LNG - Asia shipments and Middle East-Europe routes, requiring the re-routing of shipping routes through the Cape of Good Hope. This added higher maritime insurance premiums has raised landed costs for buyers. Due to re-routing of a voyage through the Cape of Good Hope instead of through the Suez Canal and the Red Sea, shipments from US to India will take an additional ~10-14 days4.
• Additionally, Chinas imposition of retaliatory tariffs on US LNG in early 2025, amid broader trade tensions, introduced uncertainty into the long-term LNG supply landscape. This may affect future investments and risk mitigation strategies for Asian buyers, particularly in India, Korea and Japan. However, this issue is an evolving issue and multiple negotiations are ongoing at different fora to resolve this crisis.
• From a structural standpoint, Artificial Intelligence (AI) emerged as both a productivity catalyst and a socio-economic challenge. According to the OECD Employment Outlook 2024, approx. 27% of current jobs in advanced economies face high automation risk due to AI and robotics. While AI adoption is expected to raise efficiency across industries, concerns remain regarding its potential to displace low and mid-skill jobs, weaken household demand and slow long-term GDP growth unless balanced by social and labour market policies.
In summary, FY 2024-25 was marked by moderate global growth, dominated by Asian economies, while geopolitical frictions, tariffs, AI-driven labour shifts and LNG market realignments introduced a new layer of complexity for economic and energy planners alike.
1.2 Global Energy Sector
The global energy demand experienced strong growth in 2024, expanding at a rate faster than the average of the previous decade. As per the IEA Global Energy Review 20255, global primary energy supply grew by around 2.2% from 634 EJ6 in 2023 to 648 EJ in 2024. The increase was primarily due to rising electricity demand by 4.3%, well above the 3.3% growth in global GDP, driven primarily by record temperatures, electrification and digitalisation. Renewables accounted for the largest share of the growth in absolute global energy supply, followed by nuclear, Natural Gas, coal and oil. The yearly growth rates and share of each source in primary energy mix is indicated in Table-1 and Figure-3.
Natural Gas remained the most resilient fossil fuel, with demand rising by 2.7%, led by China (+30 BCM, +7%), the US (+20 BCM, +2%) and other emerging Asian economies (IEA Gas Market Report Q2-2025). LNG played a key role in balancing trade disruptions, with flexible supply helping to offset regional shocks. Oil demand growth slowed to 0.8%, with its share in global energy falling below 30% for the first time in 50 years. Meanwhile, coal remained in high use in Asia, though its long-term slowing of demand growth continues 5.
Table 1: Global Primary Energy Supply
| Source | Energy Supply in EJ | Growth Rate | |
| 2023 | 2024 | 2023-24 | |
| Renewables | 92 | 97 | 5.4% |
| Nuclear | 30 | 31 | 3.7% |
| Natural gas | 145 | 149 | 2.7% |
| Oil | 192 | 193 | 0.8% |
| Coal | 175 | 177 | 1.2% |
| Total | 634 | 647 | 13.8% |
Clean energy investment exceeded USD 1.8 trillion in 2024 (BNEF7), yet remains below the level required for Net Zero alignment. Geopolitical tensions including LNG trade realignment, Red Sea disruptions and Chinese tariffs continued to shape market dynamics.
Overall, the sector reflects a dual trajectory: persistent energy demand growth alongside an accelerating shift toward low carbon fuels, with Natural Gas and renewables emerging as central to both energy security and transition goals.
In summary, FY 2024-25 underscored the critical balancing act in the global energy transition between accelerating renewable deployment and ensuring stable, secure and affordable energy through Natural Gas. For India, this period reinforced the importance of gas as a catalyst for clean energy transition and as a key enabler of the Countrys energy security ambitions.
1.3 Global Gas Sector
Natural Gas retained a significant share of 23% in the global primary energy mix at around 149 EJ [or 4172 BCM (11430 MMSCMD) in 20248], continuing its role as a transitional fuel in the shift toward a low-carbon economy. Despite growth in renewable energy installations, fossil fuels particularly Natural Gas remain critical to ensure balancing renewable intermittency and supporting industrial and urban energy needs across both advanced and developing economies.
Natural Gas saw the strongest demand growth among fossil fuels. Global demand for Natural Gas expanded in 2024, recovering from the marginal stagnation seen in the previous year. According to IEA Global Energy Review 2025, gas demand reached a new all-time high, with over three-quarters of growth coming from emerging market and developing economies.
IEA data indicate that gas demand increased by 2.7% or 115 Billion Cubic Metres (BCM) (equivalent to around 4 EJ) in 2024. This was above the around 2% annual average growth rate from 2010 to 2019 and well above the rate of around 1% between 2019 and 2023, amid the Covid pandemic and global energy crisis. Emerging market and developing economies in Asia accounted for around 40% of additional gas demand in 2024 on the back of continued economic expansion.
As per IEA Gas Market Report - Q2, CY-20259, (data for Q1 of CY-2025 or Q4-FY 2024-25) gas demand growth was primarily concentrated in Europe and North America, with weather conditions, including lower temperatures, leading to stronger gas use in buildings and the power sector. In contrast, gas demand growth slowed in Asia amid higher spot Liquefied Natural Gas (LNG) prices and a milder winter in China. Tighter market fundamentals put upward pressure on gas prices across all key markets, while geopolitical tensions have also continued to fuel price volatility.
Global LNG trade remained stable in 2024, reaching an estimated 407 million tonnes (MTPA), representing a modest increase of 3 MTPA over the previous year (Shell, LNG Outlook 2025). This marked the smallest annual supply addition in a decade, driven by delayed start-ups of new liquefaction capacity and production slowdowns in traditional exporting countries. According to the IEA Gas Market Report Q2-2025, global LNG supply grew by only 2% (6 BCM) during the 2024-25 winter season. However, supply growth is expected to accelerate to 5% (27 BCM) in 2025, with North America contributing nearly 85% of new volumes. On the demand side, European LNG imports fell by 23 MTPA, as mild weather and weak industrial consumption persisted. Conversely, China and India saw increased LNG intake, supported by competitive spot prices and strong summer power demand.
India, which imported approx. 35.72 BCM (~97.86 MMSCMD) of LNG in FY 2024-25 (PPAC), benefited from lower landed costs and sustained its long-term procurement strategy to mitigate price shocks. Indias regasification infrastructure including terminals at Dahej, Hazira, Dhamra, Ennore and Kochi continued to support a diversified supply portfolio and is expected to play a vital role in meeting projected demand growth.
Looking ahead, both the IEA and Shell LNG Outlook 2025 foresee LNG as a central pillar of global energy transition, particularly for fast-growing economies in Asia. Shell estimates that over 170 MTPA of new liquefaction capacity will be
Figure 4: Forecasted change in Natural Gas Consumption by region & sector - 2025 vs 2024 required globally by 2030 to meet rising demand. The Figures 4 & 5 provides the global projected LNG supply and demand up to 2040 as per Shell LNG Outlook 202510.
For India, LNG remains crucial in ensuring energy security, balancing renewables and decarbonising industrial sectors. However, price volatility, evolving trade dynamics and uncertainties in upstream sector projects are likely to shape market risk profiles in the near term.
Indias growing role in the global gas ecosystem is underscored by both consumption trends and policy direction. As per PPAC and S&P Global, Indias natural gas consumption in FY 2024-25 stood at approximately 195.3 MMSCMD, marking an increase of an overall growth of 3.6% on year-on-year (y-o-y) basis, with growth spikes observed across CGD, Petrochemicals and industrial segments in the year. On long term basis, the 5-year CAGR showed the maximum growth in Miscellaneous (Industrial/Manufacturing/Sponge Iron), followed by CGD and Fertilizer sectors. This expansion was supported by both increased domestic production (increasing from ~28 BCM in FY-2020-21 to ~36 BCM in FY 2024-25)11 notably from deepwater fields on the east coast and higher LNG imports. India imported an estimated 36.35 BCM (~27 MMT) of LNG during the year, maintaining its position as the fourth-largest global importer. Multiple Indian companies including GAIL secured or renewed long-term LNG contracts to mitigate exposure to spot market volatility and ensure future supply stability.
The Government of Indias vision of increasing the share of gas in the energy basket to 15% by 2030 continues to shape investments and reforms in the sector. Key developments include completion of major segments of the National Gas Grid, expansion of CGD coverage to over 600 districts and progressive pricing reforms such as the revised domestic gas pricing mechanism for APM and market-based gas price discovery for non-APM gas and rationalising high-cost deepwater HPHT gas. Moreover, regulatory initiatives aimed at enhancing pipeline access, simplifying tariffs and potentially bringing gas under the GST framework are expected to further strengthen demand.
Figure 5: Global LNG Demand & Supply Status Forecast
At a global level, while the IEA Net Zero Emissions Scenario projects peak gas demand by 2030 under aggressive climate alignment, other scenarios such as BPs New Momentum Outlook and Shells Energy Security Scenario suggest continued relevance of gas well into the 2040s, particularly in fast-growing economies like India. In these markets, gas is expected to support base load and peaking power needs, industrial energy demand, hydrogen production and urban mobility, thereby playing a vital role in both economic development and decarbonization.
Demand Trends
Global gas demand saw a recovery in 2024, growing by around 2% over the previous year. This was largely driven by:
• Weather normalization in Europe - In
FY 2023-24 winter, Europe had witnessed abnormally low gas demand due to milder winter and higher withdrawals from gas storages. In contrast, winter temperatures regained normalcy in FY 2024-25, leading to return of gas demand for heating of buildings and in power sector. Despite this, structural reductions in industrial gas demand persisted due to high energy costs and slower economic recovery.
• Revival in industrial activity across key Asian economies including India, China and South Korea.
• Greater fuel-switching in power generation from coal to gas, supported by easing LNG prices.
While gas demand in Europe continues to decline structurally due to electrification and net-zero targets, Asian economies are expected to drive most of the future demand growth. According to the Shell LNG Outlook 202512, majority of incremental gas demand through 2040 will originate from Asia- led by India, China and Southeast Asia where gas plays an important role in energy security, industrial development and urban air quality improvement, while demand from Europe is expected to reduce. Additionally, demand for LNG bunkering in marine shipping is expected to increase.
On a sectoral basis, the Shell LNG outlook 204012 anticipates that the key demand drivers of LNG demand in the future is going to be due to fall in use of coal, switching to gas in power sector, increased use of gas in transport sector, gas for powering datacentres & AI. Overall, bulk of the future demand is going to arise from industrial demand. However, the sectoral break up of demand for gas will vary depending on region. The IEA Gas market report 2025-Q213 provides a detailed break up of sector & region wise change in demand forecasted for 2025 vis-a-vis 2024.
Supply Trends
On the supply side, global gas production increased modestly in 2024, supported by expansion in the United States, Qatar and Russia (primarily toward non-European markets). LNG has emerged as the dominant mode of cross-border gas trade, with its share rising to nearly 59% of globally traded gas. Global LNG trade volumes in 2024 were estimated at 410-420 million tonnes (~545 BCM), growing at ~4% year-over-year.
The United States remained the largest LNG exporter, delivering over 120 BCM (~91MMT) of LNG during the year, followed by Qatar and Australia. New liquefaction capacity became operational in the US Gulf Coast and the Qatar North Field East project moved closer to completion. African countries such as Mozambique and Senegal also made progress on LNG export infrastructure, adding to future supply diversity.
Import-side dynamics continued to shift:
• China became the worlds largest LNG importer, surpassing Japan, importing over 75 MMT (~98.5 BCM) in 2024.
• India recorded one of the fastest growth rates among importers, with LNG imports growing ~10% to 35.72 BCM (27 MMT), amid improved affordability and growing industrial uptake.
• European LNG demand plateaued as conservation measures, efficiency and alternatives such as Biomethane and Hydrogen gained ground.
Price and Volatility
After a period of extreme price volatility in FY 2022-23, global gas markets experienced relative price stability over FY 2023-24 and FY 2024-25. In CY 2023, Asian spot LNG prices, as measured by the Japan-Korea Marker (JKM), averaged approx. $16.13/MMBtu, a sharp decline from the CY 2022 average of $34.25/MMBtu. The moderation was driven by high global gas storage levels, a mild winter in North-east Asia and reduced LNG demand from Europe. This downward trend continued into FY 2024-25, with JKM prices averaging in the range of $12.52, while European TTF prices stabilized around $11.9/MMBtu14. The softening in prices improved affordability for emerging markets like India and supported a recovery in price-sensitive demand, particularly in the power and industrial sectors. This relative stability, despite ongoing geopolitical risks, improved affordability for price-sensitive Asian markets. According to Shell15, forward prices for 2025 indicate continued price volatility due to tight flexible cargo availability and seasonal weather impacts.
However, risks remain elevated. Geopolitical tensions particularly in Eastern Europe, the Middle East and the Red Sea — disrupted maritime routes and increased shipping costs. In early 2025, China imposed tariffs on US-origin LNG, which redirected trade flows and added a new layer of complexity to contract negotiations and long-term procurement strategies. The 15% retaliatory tariff imposed by China on U.S. LNG in early 2025 has disrupted global LNG trade flows, causing U.S. cargoes originally destined for China to be redirected to Europe and other Asian buyers. This rerouting has increased market flexibility, leading with spot prices softening in the Atlantic basin and firming in parts of Asia due to tightened availability from preferred non-U.S. sources. Overall, the impact on global LNG prices has been moderate but underscores heightened volatility risks linked to trade policy.
1.4 Indian Energy Sector
Indian Primary Energy Sector Trends
India remains heavily reliant on primary energy imports to meet its growing demand. The import dependency of primary energy resources is as under:
• Import Dependency of Crude Oil (on POL consumption basis) for FY 2024-25: ~88.2% (provisional)16
• Import Dependency of Natural Gas (on consumption basis) for FY 2024-25: ~50.5% (provisional)16
• Import Dependency of Coal for CY 2024 (as per EI Stats): ~21.42%17
This continued import dependency underscores the strategic imperative to diversify energy sources, strengthen domestic output and accelerate the transition to renewables.
Indias energy consumption pattern in CY 2024 demonstrated strong growth, propelled by industrial revival, urban development and rising electricity demand. As per EI Stats 2025, in CY 2024 the Countrys Total Energy Supply (TES)
increased by 4.3% year-on-year, reaching approx. 38.76 Exajoules (EJ), equivalent to ~925.6 MMTOE. This uptick in energy supply reflects the economys expanding energy requirements and ongoing structural transformation.
Composition of Total Energy Supply Mix18
The Indian energy mix in CY 2024 continues to be dominated by fossil fuels, although renewable energy is gained ground:
• Coal: Maintained its central role with a 59.25% share in TES, supported by a production increase of 7%, reaching 1085.10 million tonnes of Coal.
• Oil: Accounted for 28.13% of TES, with imports reaching 224.5 million tonnes.
• Natural Gas: Contributed 6.53% to TES, with gross domestic production at 32.4 BCM and imports at 37.9 BCM.
• Renewables: While still modest in TES contributing 3.1%, renewable energy supply increased significantly to 1.20 EJ a growth of 10.2% y-o-y. On consumption basis, renewables registering a growth of 7.2% over last 10 years.
Energy Consumption
The Energy Statistics 2025 report19 from Ministry of Statistics and Programme Implementation (MoSPI) provides the sectoral split of Indias provisional Total Final Consumption (TFC) of energy (as of FY 2023-24), which reflects consumption of energy into different end-use sectors such as, industry, transport, residential and services etc. As of FY 2023-24, Indias TFC (P) stood at 614 MMToe (25.7 EJ), up by over 9% since FY 2022-23. The industrial sector led consumption growth in 2023-24, rising by 13.2%, followed by transport (10.7%) and commercial services (6.6%). This pattern aligns with Indias rapid economic and infrastructure development.
1.5 India Gas Sector Developments
Indias natural gas sector continued its upward trajectory in FY 2024-25, underpinned by policy reforms, expanding infrastructure, and a long-term vision to evolve into a gas- based economy. The Govt. of India aims to increase the share of natural gas to 15% in the energy basket from existing ~6.5%18 (based on TES for 2024-25) to 15% share, which is an increase from current level of ~ 195.3 MMSCD to ~ 500 MMSCMD by Natural gas, as a cleaner-burning fuel, is playing a critical role in complementing renewables, reducing urban air pollution, and enabling industrial decarbonization. However, it will need significant efforts from all the stakeholders, policy reforms from the government and huge investment in the entire gas value chain to achieve this target.
According to the Petroleum Planning and Analysis Cell (PPAC), Indias total gas consumption in FY 2024-25 reached approximately 195.3 MMSCMD (71.2 BCM), marking a
robust growth of over 3.6% compared to the previous year. The fertilizer sector continued to be the largest consumer, accounting for around 29% of the demand, followed by the City Gas Distribution (CGD) segment, which surpassed the power sector as the second-largest user at 21%. Based on the last 5-year CAGR, the CGD sector is the fastest growing major gas consuming large sector. The growth in CGD was driven by continued expansion of CNG vehicles and piped gas networks in urban and semi-urban areas and more importantly, allocation of domestic APM Gas to CGD sector. Additional demand was seen from sectors such as refining, petrochemicals, ceramics and metals, as industry progressively shifted away from more polluting fuels. It can be clearly seen from the Table 2 & 3 that there is a shift in the consumption pattern among the top three anchor consumers, while fertilizer industry continues to be the major consumer of Natural Gas, CGD Sector has now surpassed the Power Sector to become the second largest consumer of Natural Gas.
Table 2: Historical gas usage pattern across sectors
| Total (MMSCMD) | FY 2019-20 | FY 2020-21 | FY 2021-22 | FY 2022-23 | FY 2023-24 | |
| Fertilizer | 44.15 | 48.72 | 49.53 | 53.15 | 57.63 | 56.19 |
| CGD | 29.82 | 25.29 | 33.36 | 32.95 | 36.96 | 41.29 |
| Power | 30.36 | 29.69 | 27.83 | 22.34 | 24.88 | 24.39 |
| Refinery | 21.33 | 21.67 | 14.55 | 10.71 | 15.22 | 16.09 |
| Petrochemicals | 9.78 | 8.42 | 7.85 | 5.37 | 8.15 | 9.20 |
| Others | 19.34 | 19.96 | 35.35 | 36.31 | 45.67 | 48.14 |
| Total | 154.77 | 153.74 | 168.47 | 160.83 | 188.52 | 195.30 |
Source: PPAC
Table 3: Comparison of sectoral gas usage across FY 2023-24 & FY 2024-25
| Sector | FY 2023-24 (MMSCMD) | FY 2024-25 (MMSCMD) | Growth (y-o-y) | % Share FY 2023-24 | % Share FY 2024-25 | Last 5-year CAGR |
| Fertilizer | 57.63 | 56.19 | -2.50% | 31% | 29% | 4.94% |
| CGD | 36.96 | 41.29 | 11.71% | 20% | 21% | 6.72% |
| Power | 24.88 | 24.39 | -1.96% | 13% | 12% | -4.28% |
| Refinery | 15.22 | 16.09 | 5.73% | 8% | 8% | -5.48% |
| Petrochemicals | 8.15 | 9.20 | 12.87% | 4% | 5% | -1.22% |
| Others | 45.67 | 48.14 | 5.41% | 24% | 25% | 20.01% |
| Grand Total | 188.52 | 195.30 | 3.60% |
Source: PPAC
Indias energy sector is undergoing a significant transformation, with a growing focus on cleaner sources of energy. However, Natural Gas is expected to play a critical role in the Countrys energy mix for the foreseeable future. Next wave of gas demand will come from Refineries, Chemical process industries and Iron and Steel plants, both as feedstock, fuel and process requirements. With the completion of the National Gas Grid (NGG), all the refineries currently isolated from the gas grid can move to gas, increasing gas consumption. Further, gas-based blast furnace and gas-based DRI (Sponge Iron) can open up demand for gas.
The power sector is considered to be one of the key drivers of any gas-based economy. If we take the example of the USA, over 43% of the electricity comes from gas, 21.4% from renewables, 18.6% from nuclear and 16.2% from coal21.
However, in India over two-thirds of the electricity comes from coal- based plants and the share of gas in electricity generation is merely 2% in FY 2024-25. Indian power sector needs reforms such as peaking power policy, Gas-RE integration for 24x7 power and review of Merit Order Dispatch considering the health and pollution cost.
These reforms can increase the share of gas in primary energy basket. However, to substantially increase consumption of Natural Gas, it has to be used as baseload fuel.
On the supply side, Indias domestic gas production averaged around 98.93 MMSCMD (~36.113 bcm) in FY 2024-25 (P), as per data from PPAC. Major contributions came from deep-water assets on the eastern coast, including the KG-DWN-98/2 field operated by ONGC and the KG-D6 block of RIL-BP. Production from coal bed methane (CBM) and marginal fields also added to domestic availability. However, domestic production continues to meet only about 50% of the total demand, necessitating reliance on imported LNG.
India has been the worlds fourth-largest importer of liquefied natural gas (LNG). The LNG import gas grown by over 15% in 2024-2025 over 2023-2024 and this is going to further increase on account of limited domestic natural gas production and government aim of increasing the natural gas share in the primary energy mix. LNG import in the country during FY25 was 35.72 BCM (~97.86 MMSCMD). GAIL in FY 2024-25 has successfully completed construction of the breakwater at KLL, Dabhol, ensuring all-weather access and year-round availability for the LNG re-gasification terminal, thereby leading to enhanced LNG import capacity for the Country. Additionally, we may also see the adoption of LNG in the transport sector in coming days primarily in long haul vehicle.The Government envisages a strategic role for biofuels and Biogas in particular, to strengthen Indias energy security and provide access to clean and affordable energy for all. Wider adoption of Biogas will support the Governments vision of increasing the green-energy mix, reducing import dependence, meeting Indias international commitments for climate change mitigation as well as the Aatmanirbhar Bharat Rsmission. It will also promote entrepreneurship, foster rural economy and employment, mitigate air pollution from vehicles and burning of agricultural waste and support effective urban waste management.
With growing awareness of urban pollution and the ban on polluting fuels like petcoke and furnace oil, we can see gradual adoption of gas among various industrial & commercial customers. It is envisaged that Natural Gas will be in the ambit of GST in the coming years and which is expected to boost demand from MSMEs/SMEs due to the benefit of an input tax credit.
With government policy support, industry initiatives, efforts from developers and suppliers, we may achieve the ambitious target set out for moving the Country towards gas-based economy.
1.6 Indian Petrochemical Sector
India has a huge demand for chemical and petrochemical products and it aspires to become a global manufacturing hub for chemicals & petrochemicals. With the increasing demand, India is projected to contribute to more than 10 percent of the incremental global growth in petrochemicals over the next decade. Currently, the Indian Chemical and Petrochemical Industry is estimated to be worth $178 billion & all analyst are quite bullish on the growth trajectory of India for next two decades.
The per capita consumption of polymers is about one-third of the global average. Average per capita consumption of Polymer in India is ~14 kg which is one-third of the global average. Hence, even a 1 kg increase in per capita consumption means that India need a cracker of 1.4 Million MT every year. The key drivers for petrochemical industry growth include robust GDP outlook, under penetrated markets, rapidly growing end-user industries and significant import substitution opportunity.
A large share (around 80 %) of Indias petrochemicals capacity continues to be refinery integrated due to limited feedstock availability. Historically, Naphtha has been the dominant feedstock for Indian producers. This is in contrast with other regions such as the Middle East and US, where abundant gas supply has led to a development of stand-alone petrochemicals assets. Notable exceptions to this are GAILs petrochemical plant at Pata, erstwhile IPCL petrochemical at Nagothane and Dahej which use Natural Gas as feedstock. However, major new greenfield petrochemicals plants in India are increasingly adopting ethane or mixed feed in their assets. GAILs upcoming PDHPP plant at Usar is based on Propane as feedstock, whereas PTA, to be manufactured at GAIL Mangalore Petrochemicals Limited, Mangaluru will use paraxylene as feedstock.
Most of the upstream producer have started gas processing to extract various value-added products such as ethane, propane etc. and transporting majorly the lean gas. All these factors are going to increase the availability of multiple feedstock in the eco-system and will reduce the dependency on single feedstock. Indian petrochemical players may explore utilizing various feedstocks available to build flexibility and gain cost advantage and reduce import dependency leading towards Aatmanirbhar Bharat.
Table 4: Major Petrochemical Production and Consumption in India
Production of Selected Major Petrochemicals (Product-wise) during 2016-17 to 2023-24 (in 000 MT)
| FY 2016-17 | FY 2017-18 | FY 2018-19 | FY 2019-20 | FY 2020-21 | FY 2021-22 | FY 2022-23 | FY 2023-24 | |
| LINEAR LOW DENSITY POLYETHYLENE (LLDPE) | 1,318.30 | 1,290.00 | 1,581.20 | 2,994.00 | 2,958.90 | 2,914.10 | 2,424.40 | 2,750.00 |
| HIGH DENSITY POLYETHYLENE (HDPE) | 1,520.00 | 1,578.40 | 1,597.70 | 1,897.60 | 1,910.00 | 1,915.80 | 1,717.90 | 1,961.50 |
| POLYPROPYLENE(PP) | 4,253.40 | 4,350.20 | 4,779.00 | 4,982.80 | 4,919.10 | 5,240.70 | 4,773.50 | 5,371.20 |
| TOTAL POLYMERS (Incl. above and LDPE, PS, EXPS, PVC) | 9,163.10 | 9,275.90 | 10,040.50 | 12,403.70 | 12,143.60 | 12,470.70 | 11,486.60 | 12,547.90 |
Consumption of Selected Major Petrochemicals (Product-wise) during FY 2016-17 to FY 2023-24 (in 000 MT)
| FY 2016-17 | FY 2017-18 | FY 2018-19 | FY 2019-20 | FY 2020-21 | FY 2021-22 | FY 2022-23 | FY 2023-24 | |
| LINEAR LOW DENSITY POLYETHYLENE (LLDPE) | 1,734.10 | 1,486.20 | 1,349.40 | 2,910.40 | 3,050.90 | 3,070.80 | 2,860.70 | 3,136.10 |
| HIGH DENSITY POLYETHYLENE (HDPE) | 2,372.40 | 2,365.70 | 2,042.50 | 2,198.60 | 2,321.90 | 2,544.90 | 3,276.30 | 3,838.60 |
| POLYPROPYLENE(PP) | 4,460.30 | 4,737.20 | 4,915.80 | 5,438.40 | 4,911.80 | 5,831.00 | 6,123.00 | 6,740.70 |
| TOTAL POLYMERS (Incl. above and LDPE,PS, EXPS, PVC, PVC Compound) | 12,703.20 | 12,839.10 | 12,585.50 | 14,218.40 | 13,296.50 | 14,491.00 | 15,689.60 | 17,155.60 |
2. GAIL PERFORMANCE
2.1 Operational Performance
The operational performance of your Company for FY 2024-25 is as follows:
| Particulars | UOM | FY 2024-25 | FY 2023-24 | ||
| Quantity | Revenue from Operations* ( Rs in crore) | Quantity | Revenue from Operations* ( Rs in crore) | ||
| Natural Gas Marketing | MMSCMD | 101.49 | 1,20,412 | 98.45 | 1,14,590 |
| Natural Gas Transmission | MMSCMD | 127.32 | 11,068 | 120.46 | 10,308 |
| LPG Transported | TMT | 4,478 | 835 | 4,396 | 732 |
| Polymers Sales | TMT | 845 | 8,088 | 787 | 7,753 |
| LPG and other Liquid Hydrocarbon Sales | TMT | 951 | 5,180 | 998 | 5,076 |
*including intersegment revenue
2.2 Financial Performance
(Rs in crore)
| Particulars | FY 2024-25 | FY 2023-24 | Change Increase/(Decrease) |
| Revenue from Operations | 1,37,288 | 1,30,638 | 5% |
| Profit Before Tax | 14,825 | 11,555 | 28% |
| Profit After Tax | 11,312 | 8,836 | 28% |
2.3 Financial Parameters
( Rsin crore)
| Particulars | FY 2024-25 | FY 2023-24 |
| Capex (including equity contribution to group companies) | 10,512 | 11,426 |
| Reserves and Surplus (excluding Transition Reserve, Other Comprehensive Income & Bond Redemption Reserve) i.e. Free Reserves | 56,666 | 49,556 |
| Net worth | 63,241 | 56,131 |
| Total Loans outstanding | 13,577 | 16,413 |
No amount of principal or interest in respect of Foreign Currency Loan was outstanding as on 31st March, 2025.
2.4 Ratio Analysis
| Particulars | FY 2024-25 | FY 2023-24 |
| Debt-Equity ratio (times) | 0.26 | 0.29 |
| Debt Service Coverage Ratio (times) | 3.88 | 3.31 |
| Interest Coverage Ratio (times) | 15.35 | 12.97 |
| Return to Net Worth (PAT/Net Worth) (%) | 17.89 | 15.74 |
| Return on Capital Employed (PBIT/Capital Employed) (%) | 16.91 | 14.34 |
| Debtors Turnover [Net Credit Sales (i.e. Net Sales)/Average Trade Receivables] (times) | 13.09 | 11.80 |
| Inventory Turnover (Cost of Goods Sold/Average Inventory) (times) | 22.40 | 22.81 |
| Current Ratio (Current Assets/Current Liabilities) (times) | 0.95 | 0.92 |
| Operating Profit Margin [(EBIT - Other Income)/Net Sales] (%) | 7.84 | 7.71 |
| Net Profit Margin [Profit After Tax (PAT)/Net Sales] (%) | 8.26 | 6.79 |
Despite challenges in global economy, your Company had a landmark year, reaching unprecedented financial milestones and achieving the highest-ever EBITDA, PBT and PAT in GAILs history. Your Company reported Revenue from Operations of Rs1,37,288/- crore during FY 2024-25. Profit Before Tax stood at Rs14,825/- crore, an increase of 28% while Profit After Tax stood at 11,312/- crore, an increase of 28% as compared to previous financial year. The strong performance in FY 2024-25 is attributed to enhanced operational efficiency in Natural Gas Transmission volume increased by 6%, Natural Gas Marketing volume increased by 3% and Petrochemicals production increased by 6%. However, LHC production saw a 5% decline mainly due to a reduction in APM gas allocation in Q4 FY 2025. Additionally, an exceptional income of ~ Rs2,440 crore was recorded from an arbitration settlement with M/s SMTS.
Aforesaid factors have a positive impact on Key Financial Ratios during this financial year as compared to previous financial year and as a result Companys Operating Profit Margin Ratio increased from 7.71% in FY 2023-24 to 7.84% in FY 2024-25. Net Profit Margin Ratio increased from 6.79% in FY 2023-24 to 8.26% in FY 2024-25. Return on Net Worth Ratio increased from 15.74% in FY 2023-24 to 17.89% in FY 2024-25 due to increase in PAT which was mainly due to an exceptional income of ~ Rs2,440 crore received on account of arbitration settlement with M/s SMTS during current year.
2.5 Market Capitalization
Market capitalization (BSE) of the Company increased from 1,19,108 crore on 31st March, 2024 ( Rs181.15/Share) to 1,20,160 crore on 31st March, 2025 (182.75/Share).
3. OUTLOOK FOR THE FUTURE
3.1 Strategy
Your Company has charted a clear and dynamic roadmap for the future under the framework of Strategy 2030, which is periodically reviewed and fine-tuned to remain aligned with evolving market conditions, regulatory changes, global energy trends and technological disruptions. GAILs strategic intent remains anchored in consolidating its leadership in the core energy value chain while accelerating its transformation into a diversified and sustainable energy Company. The Companys strategy is structured around primary focus in its core businesses of Natural Gas & value addition, operational excellence and business diversification opportunities towards energy transition & net-zero emissions.
GAIL is focused on strengthening its traditional core businesses in natural gas transmission, marketing, petrochemicals, and CGD Sector. During FY 2024-25, your Company transmitted an average of ~127 MMSCMD of natural gas. GAILs average gas marketing volume stood at ~101.49 MMSCMD for the year. To backbone of this expanding natural gas penetration is are the gas existing transmission pipelines of GAIL, as well as new pipelines under construction.
In pursuit of the vision for a National Gas Grid, GAIL is now executing several critical pipeline projects to further densify and integrate the network:
• Mumbai-Nagpur-Jharsuguda Pipeline (MNJPL)
• Srikakulam-Angul Pipeline (SAPL)
• Gurdaspur-Jammu Pipeline (GJPL)
• Singasandra to Krishnagiri & Krishnagiri to Coimbatore Sections of Kochi-Kootanad-Bengaluru-Mangaluru Pipeline (KKBMPL)
• Durgapur-Haldia and Dhamra-Haldia Section of JHBDPL
The Company also continues to grow its CGD footprint through its subsidiaries and joint ventures, maintaining its position as Indias largest CGD operator. Efforts are underway to further expand the PNG and CNG customer base across Geographical Areas (GAs), thus ensuring deeper market penetration.
To support Indias energy security, GAIL is actively diversifying its LNG sourcing portfolio. GAIL has already secured multiple long-term LNG tie-ups and reinforced its position as Indias largest gas marketer. However, keeping at pace with global geopolitical issues, GAIL is aiming for further portfolio diversification to ensure continuous energy security. Your Company has been exploring long-term LNG sourcing opportunities expeditiously with major global LNG producers. RLNG Tie-ups to the tune of ~2.72 MTPA were materialized during FY 2024-25. With a view on long term supply security, GAIL chartered another state-of-the-art vessel on long term charter, rechristened as GAIL Sagar. GAIL also awarded another contract for long term charter of hiring of LNG Vessel (Maran Gas Pericles) from year 2027 to 2038. With this, GAIL now operates a fleet of five LNG vessels, significantly enhancing its logistics and sourcing capabilities.
Apart from the regular long-term sources of domestic gas & RLNG, your Company is actively participating in the evolving domestic spot market and has won multiple e-auctions in the IGX trading platform, including HPHT gas volume from KG Basin in FY 2024-25 in the IGX trading platform. This reflects GAILs responsiveness to evolving market mechanisms and its role in deepening Indias gas market liquidity.
GAIL is also investing in Small-Scale LNG (SSLNG) and LNG for Mobility. Your Company is exploring the deployment of modular liquefaction units to supply remote locations and support stranded CGD assets. Your Company is also progressing the rollout of LNG/LCNG retail stations, with 12 stations being already operational under its various subsidiaries/JVs. These efforts will expand gas accessibility in areas not connected by pipelines and promote clean transport alternatives.
In the medium term, GAIL is scaling its petrochemical business through greenfield and brownfield capacity expansions. Projects under development include the 500 KTA PDHPP plant at Usar, the 60 KTA PP Unit at Pata and operationalisation of GAIL Mangalore Petrochemicals Limiteds 1.25 MMTPA PTA plant.
GAIL has always prioritised high operational excellence across its various business verticals. GAIL has implemented several process improvements to enhance transparency, efficiency and responsiveness, aided by digital transformation initiatives across the organisation. Key initiatives include the rollout of the Vendor Invoice Management (VIM) Portal and migration to SAP S/4 HANA, both of which are expected to significantly improve the Companys internal workflows and operational agility. Further, GAIL is implementing its flagship Project Sanchay-2, with the goal of enhancing operational efficiencies across departments and fostering innovation through data- driven techniques.
GAIL is also embarking in the biogas generation business. GAILs first CBG Plant in Ranchi was inaugurated by Honble PM Narendra Modi marking a step towards clean energy & sustainable future. Commercial Sale of CBG has been started by GAIL CBG Plant, Ranchi on 17th January, 2025. Under the CBG-CGD Synchronization Scheme, GAIL signed 212 Tripartite Agreements (TPAs) with 159 CBG producers and 38 CGD entities, facilitating the offtake of indigenous biogas. Your Company is committed to building a robust biogas ecosystem and contributing to rural circular economy development.
Your Company is also investing in clean and renewable energy projects to align with Indias energy transition goals. GAIL has operationalized a 10 MW Green Hydrogen Plant at Vijaipur, one of the largest in the Country, marking a significant step toward building capabilities under the National Green Hydrogen Mission. In parallel, GAIL commissioned the first pilot project of drive conversion from gas turbine to electric motor at Vijaipur as part of its decarbonization roadmap.
GAILs strategic goals in the long term are guided by its Net- Zero Ambition, with a target to achieve net-zero Scope 1 and 2 emissions by 2035, advanced from the earlier 2040 target. The Company is exploring new energy ventures including green chemicals, Carbon Capture And Utilization (CCUS), Bio-Ethylene and Coal-to-Synthetic Gas (SNG). A notable development is the formation of a joint venture with Coal India Limited to execute a Coal to SNG project in West Bengal.
Additionally, GAIL aims to enhance its global presence through increased LNG sourcing, participation in overseas gas assets and engagement in Indias energy diplomacy. These efforts are geared toward securing long-term energy supplies and aligning with national decarbonization and climate commitments.
In summary, your Companys strategic outlook integrates operational excellence in core businesses with proactive investments in clean energy, digitalisation and global partnerships. GAIL remains committed to delivering stakeholder value while contributing meaningfully to Indias transition toward a low-carbon, secure and inclusive energy future.
3.2 Opportunities & New Initiatives
• Natural Gas Marketing
Your Company is strengthening its existing customer base while simultaneously working on expanding gas consumption in existing/emerging sectors. Your Company has completed connectivity with major anchor load customers along Jagdishpur Haldia and Bokaro Dhamra Pipeline (JHBDPL) like Matix Fertilizers & Chemicals Ltd, Panagarh, Hindustan Urvarak Rasayan Limiteds plants at Barauni, Gorakhpur & Sindri enabling them to draw full load gas supplies. GAIL has also played an important role in meeting the demand from gas- based power producers during crunch period.
Your Company along with its Joint Ventures and Subsidiaries is also working towards constructing LNG stations along major highways so that LNG can be utilized as an automotive fuel in the Heavy-Duty Vehicles (HDVs) segment. Efforts are also going on to commence the use of LNG as an automotive fuel for heavy equipment in the mining sector which can commercially replace High Speed Diesel (HSD). In an effort to expand the gas market, your Companys Board has approved the establishment of an LNG retail vertical, representing a strategic investment of Rs650 crore. This initiative aims to explore opportunities for developing LNG dispensation infrastructure.
• Sourcing & Trading
Your Company has established itself as a major global LNG player and to meet the dynamic nature of gas demand in India, as well as to optimize the freight cost for bringing the LNG cargoes from GAILs US LNG portfolio, your Company has been constantly innovating to optimize the flow of LNG to Indian markets at an affordable and on a sustainable basis. To achieve these objectives, different forms of structured transactions have been devised and undertaken in addition to traditional ship chartering. As transactions under these structures are typically carried out at predetermined price/ formula, it also helps in mitigating risks typically associated with volatile markets.
Your Company in recent past concluded various optimization deals to optimally lift the US LNG cargoes. With growing gas demand in India, the Company would be bringing most of the US volumes to India through an optimal mix of own ship charters and structured optimization transactions like Destination Swap etc. Through the innovative Destination Swap structure, your Company not only is able to optimize the shipping length and reduce it by a few thousand nautical miles for a single cargo depending upon the delivery locations but also helped in significant reduction of carbon emissions. GAIL supplied 14 LNG cargoes to Europe during the financial year, totaling approx. 1 million tons, the highest annual LNG volume ever shipped to Europe by any Indian Company.
In the LNG business, GAIL has imported all time-high 141 LNG cargoes in India during FY 2024-25, including 16 LNG cargoes sourced on spot basis to cater to the growing need.
Your Company is also scouting the market for long-term tie- up opportunities with leading global LNG producers/traders to meet the growing downstream gas demand in India.
Your Company continuously scouts the market for optimization of its shipping fleet as well as taking additional vessels on time-charter to ensure lifting of US FOB volume and optimize the transportation cost. Further, your Company is actively undertaking hedging to manage commodity price risk.
Your Company is actively working towards Sourcing of Paraxylene (PX), which is one of the feedstocks used in production of Pure Terephthalic Acid (PTA) by GAIL Mangalore Petrochemicals Limited.
• LNG Regasification Terminals
Your Company is the commercial operator of 5 MMTPA Dabhol terminal in Maharashtra of Konkan LNG Limited. Break water facilities at Dabhol terminal has been completed and the terminal has started to receive cargoes during monsoon period from this year onwards. After 100% completion of ambient air heating system KLL shall be able to operate throughout the year at full capacity.
Your Company has also booked regasification capacities at Petronet LNG Limited Dahej terminal and Dhamra LNG terminal, Odisha on long-term basis and has been efficiently utilizing the capacity booked in the terminal.
Further, in order to cater to GAILs spot regasification requirements, GAIL from time-to-time books additional regasification capacity at Indian regasification terminals such as Hazira, Dahej etc.
Strategically located on the Maharashtra coastline, the Dabhol LNG Terminal has a regasification capacity of 5.0 MMTPA and serves as a vital link in Indias gas supply network via the Dabhol-Bangalore and Dabhol-Panvel cross-Country pipelines. Dabhol has an island breakwater (unlike conventional land- connected structures) showcasing a feat of advanced marine engineering.
This achievement comes at a crucial time as your Company looks to expand the terminals capacity from 5.0 MMTPA to
6.3 MMTPA in the first phase over the next 3-4 years. Once expanded, the terminal is expected to handle up to 100 LNG cargoes annually, thereby playing a pivotal role in reinforcing Indias energy security. •
• Natural Gas Transmission
Your Company is committed to increasing the length of its Natural Gas pipeline infrastructure by developing new Natural Gas pipelines and expanding/extension of its existing pipelines. Your Company has taken steps to provide Tie-in connections with its Natural Gas pipelines to the upcoming new gas sources including in Rajasthan/Gujarat Krishna Godavari (KG) Basin, Cauvery Basin, Coal Bed Methane (CBM) discoveries in Jharia, Bokaro & Shadol, new sources of domestic gas through bidding route and upcoming RLNG Terminals to enable more and new gas injections into its pipelines. Furthermore, InterConnections (ICs) are also being provided with the Natural Gas pipelines of other pipeline entities in the Country.
In addition to providing Last Mile Connectivity (LMC) to various industrial consumers to enable them to consume Natural Gas and shift from other alternative fuels, your Company is also providing Hooking-up connectivity (i.e. connectivity from the trunk Natural Gas pipeline to the CGD network) to about 26 CGD Networks in various parts of the Country and 3 new Last Mile connectivity (LMC) and 3 upgradations in existing LMC facilities were completed to supply/transport gas during FY 2024-25.
Your Company is the first gas pipeline Company in the Country that had started an online pipeline open-access portal for easier and transparent booking of Common Carrier Capacity in its Natural Gas pipeline. ~16,000 Capacity Tranche (CT) requests have been processed through this portal during FY 2024-25. Recently, the CT booking portal was integrated with GAILs SAP system aimed at improving operational efficiency and financial accuracy. This integration enables shorter turnaround time for contract creation in SAP, ensuring quicker processing and reduced delays.
• Developing the National Gas Grid (NGG)
Natural gas pipelines are the core and strategic assets for Indias energy security and backbone to achieve the gas-based economy. GAIL is in constant endeavor to expand its pipeline infrastructure across the length and breadth of the Country as a part of National Gas Grid. With the execution of in hand pipeline projects, GAIL is expanding its Natural Gas pipeline infrastructure on Pan India basis.
Your Company shall continue to meet the noble objective of supply and transportation of Natural Gas through its state- of-the-art Natural Gas transmission pipeline system and shall contribute to the growth and industrialization in India. Your Company is continuously playing the vital role in development of National Gas Grid and providing pipeline connectivity to the prospective customers i.e. industrial, commercial, domestic etc. located along its pipeline network and connecting the new gas sources.
Natural Gas Pipeline Infrastructure connects various gas sources to different gas markets to meet the existing/future Natural Gas demand of various Power, Fertilizer, CGD and
other industries in the Country. The gas pipeline infrastructure has facilitated widespread industrialization and has brought significant socio-economic changes to different parts of the Country.
Progress status of approved projects is as under:
| S No Projects | Total Length (in km) | Commissioned as on Mar25 | States Covered |
| 1 Jagdishpur-Haldia and Bokaro-Dhamra Natural Gas Pipeline including Barauni Guwahati Pipeline | 3,289 | 3,118 | Uttar Pradesh, Bihar, Odisha, Jharkhand and West Bengal |
| 2 Kochi - Koottanad - Bengaluru - Mangaluru Pipeline Project Phase II | 901 | 579 | Kerala, Tamil Nadu and Karnataka |
| 3 Srikakulam Angul Pipeline Project | 743 | 92 | Odisha and Andhra Pradesh |
| 4 Dhamra Haldia Pipeline Project | 253 | 150 | Odisha and West Bengal |
| 5 Mumbai-Nagpur-Jharsuguda Pipeline Project | 1,702 | 0 | Maharashtra, Madhya Pradesh, Chhattisgarh and Odisha |
| 6 Gurdaspur-Jammu Pipeline | 152 | 0 | Punjab and UT of Jammu |
GAIL has been authorized by PNGRB in March 2025 for capacity expansion of DUPL-DPPL from present 19.9 MMSCMD to 22.5 MMSCMD. This expansion will be part of GAILs integrated network.
MoP&NG had issued policy directive under Section 42 of the PNGRB Act 2006, to authorize GAIL to lay the following pipelines with alignment as suitably approved by PNGRB as part of the integrated pipeline grid:
• Extension of existing HVJ pipeline from Bhilwara to Pachpadra & Barmer having Length ~440 km and the capacity of the pipeline, as expansion of integrated HVJ network is ~2.7 MMSCMD.
• Pipeline from Mallavaram to Bhopal-Bhilwara-Vijaipur Length is ~1486 km and the proposed pipeline throughput is ~8.74 MMSCMD.
Accordingly, GAIL submitted the DFR to PNGRB and same is currently under consideration by PNGRB.
• Petrochemicals
Under the Petrochemical business vertical, your Company is in the process of setting up a 500 KTA Propane Dehydrogenation and Polypropylene (PDH-PP) Plant at Usar, Maharashtra, which is expected to be commissioned in 2025. This would be the first plant in India using Propane Dehydrogenation technology for the production of Propylene. Various project-related activities are in full swing. Further, your Company has concluded a study for assessment of carbon intensity for hydrogen produced at PDH-PP plant at Usar. GAIL signed an agreement with BPCL for a 15-year supply of Propane for upcoming petrochemical plant at Usar in Maharashtra. Your Company is also setting up a 60 KTA Polypropylene (PP) plant at Pata and 50 KTA Isopropanol (IPA) unit at Usar.
Your Company is also diversifying in Polyester Value chain, through manufacturing of PTA at GAIL Mangalore Petrochemicals Limited.
• LPG Pipeline
GAIL had commissioned Jamnagar-Loni LPG Pipeline (JLPL) during 2000-01 with initial design capacity of 2.5 MMTPA. Subsequently, JLPL network capacity was augmented from
2.5 to 3.25 MMTPA in FY 2021-22. JLPL has total length of approx.
1410 km with 11 receipt terminals and 4 en-route pumping stations. Considering the increase in demand by OMCs, GAIL has submitted its proposal to PNGRB for expanding JLPL capacity from 3.25 MMTPA to 6.5 MMTPA. GAILs proposal is currently under consideration by PNGRB.
PNGRB held public consultation for 9 new LPG pipelines in the states of Maharashtra, Goa, Chhattisgarh, Punjab, Jammu, Tamil Nadu etc. The cumulative length of PNGRBs proposed 9 LPG pipelines would be approx. 3500 km with an estimated capacity of approx. 4 MMTPA. GAIL has submitted its interest to PNGRB for the development of new LPG pipelines.
• Ethane Sourcing
For diversification of feedstock to existing and future petrochemical plants, your Company is in discussion with potential players for sourcing of ethane and ethane shipping. Besides, setting up of ethane import facility at suitable location in India is also being explored.
• Coal Gasification
Your Company is in the process of setting up a coal gasification- based Urea project through its Joint Venture Company-Talcher Fertilizers Limited (TFL) formed with Coal India Limited (CIL), Rashtriya Chemicals and Fertilizers Limited (RCF) and Fertilizer Corporation of India Limited (FCIL). The project is envisaged to produce 2,200 MTPD Ammonia and 3,850 MTPD Urea.
A Joint Venture Company of CIL (51%) and GAIL (49%), i.e. Coal Gas India Limited (CGIL) was incorporated for production of Synthetic Natural Gas (SNG) @ 80,000 Nm3/hr (~ 2 MMSCMD) from coal through Coal Gasification route. The Detailed Feasibility Report for this project is being prepared by Project and Development India Limited (PDIL).
• Advocacy Initiatives
GAIL actively participates in industry associations, trade chambers and policy forums to advance national priorities such as energy security, gas-based economy, inclusive growth, sustainability and Net Zero targets. Through these engagements, GAIL provides insights and technical expertise to support regulatory reforms, shape sectoral policies and promote cleaner energy solutions.
Key focus areas include:
• Promoting Natural Gas as a transition fuel and ensuring wider access through a robust National Gas Grid.
• Advocating rational tariffs, expansion of pipeline infrastructure and gas market reforms.
• Supporting energy transition initiatives such as green hydrogen, bioenergy and climate action.
• Encouraging sustainable business practices, ESG standards and digital governance.
GAIL has been continuously interacting with various Indian industry associations including FIPI, CII, FICCI, CSE, TERI, etc. GAIL has been consistently engaged with global associations like, World Economic Forum (WEF), International Gas Union (IGU), World Energy Council India on sustainable energy policy and reforms required in the gas sector. GAIL also regularly interacts with PNGRB, the regulatory body to update them on the current status and industry viewpoint. GAIL is also engaged with think tanks and government bodies for carrying forward Natural Gas advocacy and market development in India.
In FY 2024-25, GAIL was associated with over 30 national and international industry bodies. These platforms help articulate industry view points and support policy development for public good.
• Green Energy Initiatives
In line with Strategy 2030, your Company is exploring various opportunities for increasing its renewable portfolio through organic as well as inorganic routes.
Subsequent to the launch of CBG-CGD Synchronization scheme in April 2021, the Company has already operationalized the Synchronization scheme all across the Country. Following are the key highlights of implementation of Synchronization scheme so far:
a. Achieved 208% of MoU Target for Biogas sale by selling 31937 MT during FY 2024-25. Achieved -150%, increase in Biogas Sales over last FY.
b. The cumulative Biogas/CBG sale under Synchronization scheme at the end of FY 2024-25 is over 68 MMSCM.
c. Over 2,11,000 SCMD of Biogas/CBG was supplied/ injected under the CBG-CGD Synchronization scheme to 61 CGD GAs in March, 2025.
d. GAIL achieved a market-share of ~75% in Biogas sold in India.
e. 146 nos. of Tripartite Agreements (TPA) have been executed with 107 CBG producers and 34 CGD entities.
In yet another pioneering initiative, your Company will be setting up Indias first Liquefied Biogas (LBG) project at Sangrur, Punjab utilizing one of the SSLNG Skids owned by it. It has taken the lead to start a Pilot Project for liquefication of Biogas into LBG in order to create distributed supply centres and ensure higher offtake of Biogas for catering to distant demand centres across the Country. This LBG plant will be next to an existing Biogas plant in Sangrur, which shall be supplied ex-Sangrur to interested CGD entities under the CBG- CGD Synchronisation scheme for use in CNG (T) & PNG(D) segments.
Towards shaping a Net Zero future, your Company is exploring various business opportunities in the production of Compressed Bio Gas (CBG). The Company is an integral part
of the MoP&NGs initiative SATAT (Sustainable Alternative towards Affordable Transportation) and has invited Expression of Interest (EOI) from various CBG Producers for providing marketing tie-up of CBG at the retail outlets of your Company and its JVs.
Further, your Company is pursuing with various Government departments/agencies/bodies for allocation of land and feedstock for setting up CBG plants at various locations across the Country.
In line with Government of Indias National Hydrogen Energy Mission, GAIL has installed its first Green Hydrogen Plant at GAIL Vijaipur in Madhya Pradesh. This Green Hydrogen plant has a capacity of producing 4.3 TPD of Hydrogen, through 10MW PEM (Proton Exchange Membrane) Electrolyzer units, by electrolysis of water using renewable power.
Your Companys Board has approved acquisition of equity in M/s Leafiniti Bioenergy Private Limited (LBPL), an existing CBG Company which owns and operates a press-mud based CBG plant in the State of Karnataka, subject to DIPAM approval for formation of joint venture which is under process. Further, it has been proposed to set up 10 new CBG plants through LBPL, upon GAIL becoming its partner. Besides, your Company is exploring to set-up new CBG projects on pan-India basis based on Municipal Solid Waste (MSW) as well as agri-residue on its own as well as through joint venture mode. Your Company has also entered into MoU with M/s Verbio India Private Limited (VERBIO) for jointly exploring to set up agri residue based CBG projects in India, including possible equity acquisition in VERBIOs existing CBG plant in Punjab. Your Company has also selected a party to explore formation of Joint Venture for setting up of MSW based CBG projects.
Your Companys Board approved setting up of 500 Kilo Litres Per Day (KLPD) of 1G Ethanol plant based on rice and/or maize in the State of Rajasthan through a joint venture mode, subject to DIPAM approval and the same is under process.
Your Company has also entered into MoU with Petron Scientech Inc., USA for jointly exploring to set up 500 Kilo Tons Per Annum (KTA) of bio-ethylene plant in India. Further, your Company has entered into MoU with Government of Karnataka for facilitating in getting requisite land, approvals, clearances required for the project.
Your Company has also entered into MoU with M/s Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL) to optimise the operations of RRVUNLs gas-based power plants in Rajasthan. Currently, it owns two operational gas-based power plants in Dholpur & Ramgarh districts of Rajasthan having installed capacities of 330 MW and 270.50 MW respectively. It also includes setting up of around 1,000 MW of solar and wind projects in suitable land parcels, thus creating an opportunity for round the clock (RTC) power.
Your Company has also taken a few initiatives for development of renewable energy such as (i) extension of MoU with BHEL for development of solar power projects (ii) setting up of renewable power plants for captive consumption (iii) MoU with NTPC for cooperation in energy sector.
Small-Scale Liquified Natural Gas (SSLNG)
India has vastly expanded the City Gas Distribution network in recent years, adding to Natural Gas demand.
With the large scope of the Natural Gas market in India, GAIL intends to develop the small-scale LNG eco-system with setting up of Natural Gas liquefaction units to cater distributed consumption of Natural Gas through virtual pipelines and
LNG re-filling stations on pan India basis. This initiative shall serve as a key milestone towards powering the LNG use in transportation, City Gas Distribution (CGD), railroads and other industries. Further, Liquefaction facilities can help transfer gas from some fields that havent been commercially exploited as they are too small to support an evacuation pipeline.
Your Company plans to set up small liquefaction facilities to cater to Natural Gas demand in areas not connected to pipelines and to help transport gas from isolated fields. Your Company is also exploring monetization of stranded gas assets through deployment of SSLNG skids. Your Company is also discussing the possibility of manufacturing liquefaction skids in India.
Your Company has procured 02 Small scale LNG skids and successfully commissioned both of them. The skids are first of its kind in the Country to introduce portable and scalable liquefaction units. Liquefaction is achieved through proprietary technology-based mobile liquefaction skids. These plants will help in distribution of Natural Gas through liquefaction in new City Gas Distribution areas, liquefaction of gas at isolated fields and will support setting-up of LNG fueling stations and in bunkering.
• Project Sanchay II
Project Sanchay Rs(Profit Maximization) was launched with an objective of optimization of resources and improvement of operations and process performance to maximize returns ensuring profitable growth.
To further inculcate the concept of operational excellence across its operations, processes, systems and procedures and to rise to newer heights and achieve its futuristic goals, Project Sanchay II has been kicked off across GAIL. The intent is to maximize profits and establish a Centre of Excellence (CoE) for perpetual profit maximization in GAIL and to encourage its workforce to come forward and contribute to it. Under this Project, 30 use cases have been approved and are at different stages of implementation across GAIL.
• Global/Regional Corporate Treasury Centers
Your Company has formed GAIL Global IFSC Limited as wholly owned subsidiary on 07.04.2025 in International Financial Services Centre (IFSC) at Gujarat International Finance Tec- City (GIFT City) Gujarat. GAIL Global IFSC Limited will operate as a finance Company in IFSC GIFT City to undertake Global/ Regional Corporate Treasury Centers activities and/or Ship Leasing activities or other permissible activities.
4. THREATS, RISKS, CHALLENGES AND MITIGATION
4.1 Petroleum & Natural Gas Regulatory Board (PNGRB) Regulatory Framework
During the FY 2024-25, PNGRB has notified various Amendments & Regulations in respect of Natural Gas Pipelines and Petroleum & Petroleum Product Pipelines.
PNGRB has also issued various orders and decisions in relevant matters. The details of the said regulations, amendments, authorizations, orders and decisions are available on the official website of PNGRB (www.pngrb.gov.in) and have varying implications on the business. These regulations, amendments, authorizations, orders, decisions of PNGRB are appealable before the PNGRB Bench, Appellate Tribunal and Courts and accordingly, some of them pertaining to your Company are also under various stages of appeals. The timing and content of any final changes in regulations made by PNGRB is not in your Companys control. However, regular interactions with PNGRB on sectoral issues, participation in public consultation exercises conducted by the Regulatory Board and making logical submissions to the Regulator in writing helps your Company to anticipate or to minimize risks associated with any sudden or unforeseen changes in regulations.
During the year, PNGRB notified the amended LPG Pipeline tariff determination regulations providing for a one-time rate escalation over the base Railways goods tariff table of 2018, till the end of financial year 2024-25 and an annual rate escalation based on WPI Data from 2025-26 onwards. Based on the amended regulations, PNGRB has also issued the amended tariff orders for JLPL and VSPL LPG pipelines on
28.1 1.2024.
PNGRB is in the process of finalizing the Integrated tariff of GAIL, which is an integral part of the "Unified Tariff". The revised tariff sought is mainly on account of (i) higher cost of substitute gas consumed by compressors in pipeline operations (called System Use Gas or SUG) as APM gas allocation has been progressively curtailed to zero and (ii) the capacity determination of GAILs Integrated Pipeline by PNGRB, which has come out lower than the estimated capacity previously considered by PNGRB. The Open House meeting with stakeholders has been concluded and the revised tariff order is awaited from PNGRB.
4.2 Natural Gas Prices
Your Company currently markets Natural Gas purchased from domestic and international sources.
The Natural Gas from domestic sources predominantly consists of Government regulated gases and the price of the gas is decided by the Government from time to time. Other domestic gases which are directly sold by the gas producers through open tenders/e-auctions are purchased by your Company at discovered prices by participating in such open tenders/ e-auctions. The purchase and sale prices of these gases are often linked to benchmarks such as Standard & Poor Platts West India Marker, Japan Korea Marker, Dated Brent etc. In addition to the above, your Company purchases imported Natural Gas mainly from PLL at Dahej, Gujarat & Kochi, Kerala. The purchase and selling prices of such Re-gasified Liquefied Natural Gas (RLNG) are based on international crude price indices. Further, your Company also directly imports LNG from various suppliers worldwide and gets it re-gasified at PLLs
regasification terminals at Dahej, Gujarat, KLLs regasification terminal at Dabhol, Maharashtra, Shell Energy India Pvt. Ltd. terminal at Hazira, Gujarat and Dhmara LNG Terminal at Odisha. Such LNG imports are either under a long-term agreement ranging above three years, medium-term agreement ranging upto three years or under spot cargo purchases. Under spot cargo imports, the selling price is dependent upon the demand and supply scenario and customer affordability. Import of LNG spot cargo is based on a thorough assessment of the affordability & requirement of the end consumers and the availability of LNG in the international markets.
Your Company is undertaking hedging transactions also to mitigate the price and index risk.
4.3 LNG Portfolio
Your Company has recently sourced significant LNG volumes on long to mid-term basis and has also been exploring more opportunities to enter into long term LNG contracts with the primary objective of meeting the demand of a growing Indian economy and ensure the energy security of the nation.
As a part of system enhancement, your Company has migrated from e-mail system to web based portal for undertaking LNG/ Ship Chartering/Ship Services enquiries.
During FY 2024-25, your Company signed a 5-year LNG supply agreement with M/s Qatar Energy Trading, commencing from April 2025 for supply of about 0.8 MMTPA (60 LNG cargos) till March 2030. Furthermore, GAIL has successfully onboarded and chartered the long-term LNG vessel, GAIL Sagar and also entered into a 14-year Time Charter Party with Cool Company Ltd, , a pure play LNG shipping Company, for a newbuild LNG carrier. The time charter for the LNG carrier will commence in early 2025 and GAIL will have the option to extend the charter by two additional years beyond the firm 14-year period. Your Company is having 05 LNG carriers in its fleet and will help the Company to meet the requirement of transporting US contracted LNG volumes to India.
There is a market risk of LNG in terms of adverse movement of crude oil price/LNG prices, shortage of LNG cargos, expected increase in domestic gas volumes and risk of LNG contract default by up-stream supplier(s). The risk is mitigated through hedging and back to back contracts on a regular basis. Your Company has been taking mitigation measures like imposing downstream supply cuts within the contractual frameworks, sourcing replenishment volumes wherever necessary from spot markets etc. Your Company is scouting the market for possibility of contracting long-term LNG volumes with prominent producers/traders.
4.4 Power including Renewables
India is increasing its Renewable Energy capacity at a brisk pace with an aim to reduce carbon emissions. With an increase in Renewable Energy portfolio, the stability of the grid has become a major concern. Natural Gas based power plants can act as a balance to provide grid stability as gas plants can respond more quickly to load changes than coal based plants and also lead to reduction in emissions. However, Natural Gas based power plants have few structural issues requiring resolution through policy intervention. Your Company has been working on a case-to-case basis and in close coordination with MoP&NG and the Ministry of Power to increase/revive off-take of Natural Gas by the power sector.
4.5 Polymer, Liquified Petroleum Gas (LPG) and other Liquid Hydrocarbons (LHC)
Your Company is also marketing petrochemicals, LPG and other LHC products. The prices of these products are influenced and determined by global and domestic factors influencing demand and supply. Your Company has developed a range of market acceptable products to ensure steady consumption of the petrochemical products and has optimized its portfolio by having production facilities at Pata (UP) and Dibrugarh (Assam). LPG marketing is decided in close coordination with the PSU Oil Marketing Companies.
There is a risk of reduction in margin of Petrochemical due to lower price & high input cost and risk of unviable operations due to higher cost of feed-stock.
Continuous measures are taken towards managing margins across your Companys range of products:
• Cheaper availability of feedstock
• Petrochemical sector is set to grow in coming years
• Polymer grade optimization
• Coordination with Zonal Offices to ensure enhanced polymer sales
• Periodical monitoring of international price benchmark viz. Rupee Dollar exchange rate, import landed price etc. and taking suitable action
• Export of Polymers to Nepal restarted
4.6 Foreign Exchange Fluctuation Risk
Your Company largely imports LNG, capital goods and stores & spares for various new projects and Operation & Maintenance. Your Company has an approved Foreign Currency & Interest Rate Risk Management Policy to manage foreign exchange exposure which has been reviewed during the FY. The shortterm and long-term exposure of the foreign currency of your Company is being monitored as per the approved policy.
4.7 Commodity Price Risk
Your Company has a Commodity Price Risk Management Policy (CPRM Policy) to manage the price risk of commodities including Natural Gas. The price risk of commodities including Natural Gas being used for internal consumption as well as for selling to its various downstream customers is being monitored/hedged as per the approved CPRM Policy. Based on the opportunity available in Over the Counter (OTC) Market from time to time, your Company has undertaken various derivative transactions to hedge the price risk arising due to fluctuation in the prices of commodities including imported Natural Gas.
4.8 Natural or Man-made Calamity Risk
Various risks are associated with gas transportation and distribution like blowout of Natural Gas pipelines, earthquake, tsunami, terrorist activities etc. These risks are being mitigated right from the designing stage of these projects. However, such natural or man-made risks are emergent events and cannot be totally eliminated. If such an event occurs, it may incur significant liabilities for the Company. To mitigate the impact of such incidents, the Company has Emergency Response and Disaster Management Plan in place.
Your Company has transitioned to Mega Insurance/Large Risk Insurance Policy from the Standard Fire and Special Perils Insurance Policy (SFSP) along with add on coverage for earthquake & terrorism from Financial Year 2024-25. The mega insurance coverage is more comprehensive than SFSP and covers additional risk coverage like machinery break down and pipeline including line pack on first loss basis. For FY 2025-26, the policy was awarded to M/s New India Assurance Co. Ltd. (as lead insurer) for sum insured of Rs1.69 lakh crore.
4.9 Risk Management Framework (RM)
Risk management is an ongoing process and Company has established a comprehensive Enterprise Risk Management (ERM) framework with the vision to integrate risk management with its overall strategic and operational practices.
The components of Risk Management are defined by the Companys business model & strategies, organizational structure, culture, risk category and dedicated resources. Risk Management is a continuous and evolving process, which integrates with the culture and strategy of the Company.
The Company has formed a Risk Management Committee (RMC) of the Board and its role is as specified in SEBI LODR Regulations. The primary objective is to ensure sustainable and stable business growth supported by a structured approach to risk management. The ERM framework includes designing, implementing, monitoring, reviewing and constantly improving the risk management procedures for the organization. The ERM framework at GAIL is designed after incorporating the requirements of ISO 31000:2018 (Risk Management - Principles and Guidelines) and recommendations of the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The structure of Risk Management Framework of Company is as under:
Your Company has a Risk Management Policy and procedure to protect & add value to the organization & its stakeholders with the objective to establish a risk intelligence framework for objectively managing expected/perceived & existing risk exposures by the decision-makers in compliance to prevailing statutory regulations so as to assure demonstrable achievement of objectives and improvement of financial stability of Company.
• Risk Management Approach
Your Company uses a structured Top-down Rsand Bottom-up Rsapproach for managing risks. A Top-down Rsapproach helps to distil insights and provide clarity on the key risks whereas the Bottom up Rsapproach helps to ensure comprehensive risk identification and prioritization along with processes that control decision making across the Company ensuring a robust risk management culture.
• Risk Identification
The purpose of risk identification is to identify, recognize and describe risks that might help or prevent an organization achieving its objectives. This stage involves identification of sources of risk, areas of impacts, events (including changes in circumstances) and their causes and their potential consequences. The aim of this step is to generate a comprehensive list of risks based on those events that might create, enhance, prevent, degrade, accelerate or delay the achievement of objectives.
It is important to identify the risks associated with not pursuing an opportunity. Comprehensive identification is critical, because a risk that is not identified at this stage will not be included in further analysis.
In the changing business scenario and expansion of Company into various other activities, business risks and their mitigation plans are assessed on regular basis. Top Corporate Level Key Risks are as under:
i. Risk of delay in Project Completion of Pipelines and Process Plants.
ii. Underutilization of Natural Gas (NG), LPG transmission pipeline and Process plant may result in loss of revenue.
iii. GAILs Restructuring Risk (Monetization & Unbundling risk of GAILs Pipeline assets).
iv. Inadequate controls to protect the systems against malicious attacks may result in loss of data and disruption of operations.
v. (a) Risk of reduction in margin of Petrochemical due to lower industry demand, lower price & high input cost.
(b) Risk of unviable operations of Pata plant due to higher cost of feed-stock.
vi. (a) Market Risk of LNG in terms of adverse movement of crude oil price/LNG prices, shortage of LNG cargoes and expected increase in domestic gas volumes.
(b) Risk of LNG contract default by upstream supplier.
vii. Explosion/high fatality in case of leakage risk in/from:
a) LPG & NG pipelines and their RT/SV Stations (all locations).
b) Plants: Petrochemical and GPU/C2-C3 recovery plants (all locations).
c) GAIL CGDs NG pipeline.
viii. Risk of Third-party damage & encroachment.
ix. Risk of unfavorable Regulatory changes.
x. Effect on GAIL business on account of shutdown of ONGC facilities.
All above Top Corporate Key Risks along with mitigation measures are being monitored closely by the Top Management. Identified risks are examined and quarterly reviewed by Corporate Level Risk Steering Committee (CLRSC), Bi-annually by Risk Management Committee (RMC), Annually by Audit Committee and Board.
5. INVESTOR RELATIONS AND ENGAGEMENT (IR)
Investor Relations (IR) plays a crucial role in todays dynamic business environment by helping companies manage investors Rsexpectations effectively. The main goal of the Companys investor relations activities is to foster trust and confidence among stakeholders such as shareholders, investors and analysts through transparent disclosure of information and bilateral communication.
Consistently providing necessary information and engaging in various investor relations activities are key strategies employed by your Company. By actively interacting with the investor community, your Company aims to build trust and enhance the value derived from its IR programs.
Your Company is getting a growing interest from the investor community and has been responsive to their queries in a transparent and compliant manner. Additionally, GAIL also arranges site visits for analysts and investors to provide firsthand insights into project developments, aiding them in understanding the Companys operations better.
In the fiscal year 2024-25, the Company undertook several significant investor relations and engagement initiatives, including:
a. Hosted the Investors Rs& Analysts RsMeet 2024 in May 2024 to discuss financial results for FY 2023-24.
b. Conducted earnings calls immediately following the announcement of financial results for Q1 FY25, Q2/H1 FY25, Q3/9M FY25, Q4 FY25.
c. Participated in 19 domestic investor conferences, 01 domestic non-deal roadshow, 01 international investor conference and 02 international non-deal roadshows, organized by top brokerage houses.
All these meetings/conferences were attended by Top Management/Senior Executives of the Company. Besides organizing such meets and arranging Earnings call, the Company also arranged 48 office meetings with investors in FY 2024-25.
The investor presentation(s) are shared with Stock exchanges and are also hosted on the website of your Company.
Your Companys efforts to disseminate information to investors and analysts have been well-received and acknowledged by the investor and analyst community, demonstrating the Companys commitment to transparency and stakeholder engagement.
In line with SEBI (Prohibition of Insider Trading) Regulations, 2015, Structured Digital Database System (SDD) is already in place at GAILs Intranet containing the nature of UPSI, names of such persons who have shared the information, names of persons or entities with whom information is shared etc. Such database is being maintained internally with adequate internal controls and checks.
6. CAPABILITY DEVELOPMENT
6.1 Human Capital
As on 31st March, 2025, your Company had 5010 (including CMD, Whole-time Directors & CVO) employees on its roll. Your Company understands that more investment a Company makes in human capital, the chances of its productivity, innovation and success become higher.
Your Company has dedicated resources to develop its human capital through training and mentoring. Some of the important initiatives taken by GAIL towards this end includes:
i. OJAS, GAILs youth engagement platform, launched to foster the development, collaboration and active participation of young executives serves as a dynamic forum for channelling the energy and creativity of executives below 35 years of age through a wide range of cultural, intellectual and socially impactful initiatives. Under the aegis of OJAS, several events have been organized across various locations, including the Inter Regional Youth Festival 2024, Dance and Skit Competitions, Painting Contests, Case Study Competitions, Fitness Challenges, Waste to Wisdom, QuizMania, Nukkad Natak, GAIL Got Talent Lite and Book, Cloth and Food Donation Drives-all led and driven by Young Executive Interest Groups.
ii. More than 30 Townhall Meetings were held with employees of work centres, led by Director (HR) during FY 2024-25. This initiative proves to be a pivotal step towards facilitating open dialogue and constructive engagement of employees.
iii. Initiative "Spandan" is a testament to GAILs commitment towards employees Rsholistic wellbeing and creating an inclusive culture of care in the organization. It entails observance of a "Monthly Wellness Hour", a distinctive practice wherein employees, across all locations, convene to dedicate time towards enhancing their physical, mental and emotional well-being through a spectrum of activities within the working hours. Upon completion of one year since launch, Spandan 2.0 was launched in September 2024 which was marked by the observance of the first Wellness Week Rsacross all locations.
iv. Project Samanvaya, a part of HR outreach efforts, wherein HR representatives from Delhi/NCR offices visited various sites/plants to understand the pressing HR issues/matters and gather employees Rsfeedback/ opinions to improve HR service delivery.
v. Initiative "Aarohan" aimed at enhancing skills of young HR professionals through interactive and mutual learning. It seeks to broaden their knowledge base, introduce new approaches to their roles and drive improved performance through knowledge-sharing sessions organized to deepen understanding of GAILs business and the evolving energy landscape.
vi. GAIL Inquizzitive is an initiative aimed at enhancing employees Rsawareness and understanding of the Companys operations, policies, achievements and future goals in a gamified manner. Conducted in the form of engaging quizzes, the initiative not only educates employees about GAILs history, vision, operations and key business areas but also fosters a sense of belonging and active participation.
vii. Online Master classes exclusively curated for the leadership of GAILs Joint Ventures and Subsidiaries focusing on critical areas such as Corporate Social Responsibility (CSR), the Companies Act, Ethics and Corporate Governance etc. These high-impact session series are designed to empower senior executives with in-depth insights and practical knowledge essential for informed and strategic decision-making. By bringing together expert-led discussions on regulatory frameworks, ethical leadership and governance best practices, the initiative aims to strengthen organizational alignment, ensure compliance excellence and foster a culture of responsible leadership across the extended GAIL ecosystem.
viii. Enhanced healthcare provisions were introduced under GAIL Medical Attendance Rules.
Your Company has a well-defined policy for allowing leave for study purposes, which facilitates employees with 5 years or more experience to go on sabbatical for study purposes.
Regular performance feedback is one of the key aspects through which performance culture is achieved. A focused emphasis has been given on the "Art of giving feedback" through workshops.
A major deciding factor in improving human capital is improving the quality of life being offered at various work locations through the quality of infrastructure provided to the employees and their families. The Company puts this aspect on high importance and makes sure that employees have access to the best of facilities like Township, Hospital, School, Clubs, Sports facilities etc. The maintenance of the infrastructure is taken care at local level by HR Department.
Your Companys focus with regard to human capital management is to provide a safe and healthy work environment to deliver the performance required for business continuity while pursuing individual aspirations. Through strategic and targeted development programmes and employee engagement initiatives, your Company is building an employee base that can leverage their potential and talents to create a world where access to clean energy is given in an affordable manner.
Value Added per Employee for 2024-25 was 380.84 lakh. Value Added per Employee reflects its emphasis to make the optimal & productive use of the available resources and business opportunities.
6.2 Leadership Development Program
Taking cognizance of the challenges of coming years, the Company has defined its business strategy till 2030 to continue the unstinted growth pattern. The new projects will need to be spearheaded by leaders who have the fortitude to act entrepreneurially by actively looking and advocating for new opportunities for the Company. The Board has approved Succession Planning Policy to be followed for executives at 3 levels below the Board. The policy lists out in detail the approach and methodology to be adopted for the Succession Planning Process. It identifies Unique Role (UR) between E-7
to E-9 grade. For URs in the said levels, specification in terms of essential and desired qualification and experience has been prepared.
Succession and Staffing for all the identified critical Roles in E-7 to E-9 grade is conducted through extant Career Progression/ DPC and Placement/APE Policy Framework. Role Specifications for each of the target UR is referred to assess readiness level of the potential successor at the time of APE/DPC.
Your Company believes that capacity building and enhancing the competency of employees is the key to the successful execution of its strategic plans. As a part of preparedness for future challenges, your Company has put an Integrated Leadership Development Framework and Succession Planning Framework for facilitating leadership development and career planning.
The Development strategy comprises of multi-pronged Talent Development Interventions which includes:
• 360 Degree Feedback Exercise.
• Senior Management Development Centre (SMDC) Exercise.
• Focused Development Programmes.
360 Degree Feedback is aimed to provide an effective feedback to the concerned executive(s) via his/her peers, subordinates and seniors.
Senior Management Development Centre (SMDC) exercise has been undertaken for senior executives in Chief Manager (E-5) Grade & above. SMDC is an aid to ensure better and inspiring leadership in the organization. Based on the input of SMDC exercise, the executives are provided competency specific training in leading institutions & premier B-schools and supplemented with books & e-learning modules.
Additionally, a structured Management Development Program is also imparted to all newly promoted General Manager/Chief General Manager (E-7 and E-8) level Executives.
Your Company is grooming the senior-level executives of GAIL at the level of Executive Director and Chief General Manager for the Board Position through capability building programs like Master Class for Directors and Board Room Effectiveness.
6.3 Learning and Development
Learning and Development at GAIL has a strategic significance w.r.t the professional development of executives & workmen working in the Oil & Gas sector.
GAIL Training Institute (GTI) has organized and conducted 339 training programs during FY 2024-25 for its employees covering 94.43% employees based on the Training Need Assessment (TNA) and business requirements.
GTI has extended its wings to cater to the requirement of the Human Resource development and professional training, to the entire Oil & Gas fraternity especially in the domain of Gas Transmission and Distribution, City Gas Distribution, Gas Processing, Petrochemicals and LNG.
Focused programs for different grades and roles of employees were conducted during FY 2024-25. Management Development Programmes (MDPs) for newly promoted E-8 & E-7 employees were conducted for smooth transition to higher roles. A unique six layered program for E-6 level executives
was conducted in collaboration with IIM-Calcutta. A Dedicated Program to rejuvenate the employees working in Round the Clock Shift was conducted at International Art of Living Centre, Bengaluru. A four-week Comprehensive Orientation Program was conducted for the 76 newly joined executive Trainees and a week-long Orientation Program was conducted for 165 Lateral Entrants. Under Saarthi, program 105 Executive Trainees were enrolled in the mentoring journey.
In line with the global business environment and Indias future growth trajectory, Capability building programs in the emerging areas such as Renewable and Alternate Energy (Solar and Wind Energy), Specialty Chemicals, Hydrogen Transport in NG Pipeline, Industry 4.0 & Automation and role of Hydrogen in Emerging Economy were organized with the help of reputed Academic Institutions like IIT Delhi, IIT Bombay and ICT Mumbai etc. During the year 2024-25, more than 575 executives and 1275 executives in last four years have been trained in line with GAILs Strategy and in other emerging business areas.
GTI is accredited by American Society of Mechanical Engineers (ASME) as Authorized Training Provider (ATP) for conducting ASME training programs. In last one-year GTI has conducted ASME programs for GAIL executives and for external organizations with the help of Authorized Training Instructors (ATI) from GAIL who are certified faculty from ASME. To develop the faculty pool, in addition to the existing pool of 14 ATIs, GTI has trained 19 new ATIs through Train the Trainer Rsprogram on ASME certified courses i.e. B31.8 (Gas Transmission & Distribution Piping Systems); B31.8S (Integrity Management & Maintenance of Gas Pipelines) and B31G (Remaining Strength of Corroded Pipelines).
Several Special Initiative Programs were conducted to meet the business requirements such as:
• Vigilance Awareness through Case Study at various work centres in view of the intricacies of handling business through public money in a Public Enterprise setup. Total 330 executives were covered under this program.
• Programs were organized on Behavioral Based Safety to inculcate a culture of occupational health and safety.
• Targeted Capacity Building Program to empower Core Team and Structured training & readiness workshop for End Users on SAP S/4 HANA, for seamless transition and system adoption.
• Training programs on Artificial Intelligence/Machine Learning were conducted in view of changing business landscape.
• Special initiatives were undertaken wherein Eminent Speakers were invited from the field of Health & Wellness, Life Skills and Management.
• All Executive Trainees were onboarded on iGOT Karmayogi, a GoI online learning platform.
GTI has imparted trainings to the executives of various other /external organisations including BPCL, IOCL, Mahanagar Gas Ltd (MGL) Mumbai, Petronet LNG Limited, Indradhanush Gas Grid Limited (IGGL) Guwahati and participants from various other organizations in the areas of Natural Gas Pipeline Projects and O&M, City Gas Distribution and ASME programs.
As a part of Knowledge Management initiative, the 17th Knowledge & Experience Sharing Seminar was organized
during 20th - 21st February 2025. During the Seminar, 20 shortlisted papers across GAIL were presented in different categories sharing the technical expertise and business opportunities.
Under Industry Academia collaboration, GAIL is providing support to academic institutions by providing Faculty/Subject Matter expert for the elective course titled Natural Gas Engineering, for the students of Undergraduate Engineering program.
GAIL ABHA, an initiative for Educating, Mentoring and Hand-Holding on entrepreneurial ventures for spouses of GAIL employees posted at remote locations of GAIL at Pata & Vijaipur driven by GTI, Noida by engaging team from IIT, Madras was concluded in FY 2024-25. 42 success stories emerged out of this initiative.
GAIL ABHA 2.0, was launched by CMD on 6th Jan 2025 for spouses of GAIL employees across all the work locations.
To promote the talent of employees, a unique intervention GAILs Got Talent was conducted for employees across all work centers. The Grand Finale of GGT 1.0 took place during the Annual Celebrations of GAIL Day 2024 at New Delhi.
Celebration of 4th Janjatiya Gaurav Divas on the occasion of the birth anniversary of Shri Birsa Munda ji, Tribal Pride Day was organized at GAIL Training Institute, Noida from 15th to 26th November, 2024. A short film was also screened for all the employees of GTI Noida.
6.4 Skill Development Programs
Your Company is also playing a proactive role to support the Skill India Mission through active participation of Hydrocarbon Sector Skill Council (HSSC) and other Sector Skill Councils for providing Skill Trainings at Skill Development Institute (SDI) at Raebareli and GAIL Institute of Skills at Guna, Nagaram and Amravati.
The large number of youths were trained in various job roles during FY 2024-25 for getting gainful employment at various GAIL Institute of Skills at Guna-351 nos., Nagaram-174 nos. & Amravati- 90 nos. (ongoing).
Skill Development Institute (SDI), Raebareli has been registered and approved as Government Training Partner (GTP) with NSDC for skill training under Pradhan Mantri Kaushal Vikas Yojna 4.0 Scheme, in a step towards self-sustainable model. The institute is accredited and affiliated with 5 star rating. A total of 515 nos., of youths (including 175 females) were skillfully trained for gainful employment during the FY 2024-25.
7. HEALTH, SAFETY AND ENVIRONMENT MANAGEMENT
7.1 Corporate HSE Policy
Health, Safety and Environment (HSE) of your Company are embedded in "Core Organizational Values" and it emphasizes highest level of safety during operations & maintenance of our assets, with a focus on health & well-being of employees and promote environmentally friendly practices. Your Company has formulated Corporate HSE Policy, clearly demonstrating the commitments of the Top Management on HSE along with the responsibilities of various stakeholders including employees.
Your Company is committed to Design, Construct, Operate and Maintain Plants, Pipelines and its facilities in accordance with National & International Standards to provide adequate safety in all spheres of business areas ensuring compliance with applicable statutory rules and regulations. Your Company is committed to be a leader in Safety, Occupational Health and Environment Protection by adopting latest Technology and Digitalization.
Comprehensive Integrated Health, Safety and Environment Management System is in place, which provides the set of guidelines and procedures to fulfill the Top Managements commitment and employees responsibilities towards HSE in all areas of business.
Your Company encourages all employees including contract workmen to adopt safe working habits and behavior to create positive HSE culture within the organization and also authority to notify and stop any unsafe work/act, as deemed fit.
7.2 Safety Performance
HSE Management System in your Company has been formulated in-line with Oil Industry Safety Directorate (OISD) Standard on "Safety Management System in Petroleum Industry", PNGRB Regulations and Others National and International Codes and Standards. Accordingly, 18 elements have been identified to be part of Health, Safety and Environment Management System (HSEMS) which are applicable to all activities of GAIL.
In order to ensure the effective implementation of HSE Management System and Management Governance pertaining to HSE matters, HSE Score System has been developed to measure the performance of O&M installations through predefined parameters with specific weightage on HSE aspects like significant legal/statutory requirement, monitoring critical Operation and Maintenance Parameters, Compliances of Safety Audit Recommendations, Emergency Preparedness, Training & Awareness etc., enable to monitor and keep track of HSE Performance of GAIL installations to derive the improvement areas for strengthening the Health, Safety and Environment Management System of GAIL.
Your Company achieved an "HSE Score" of 96.37% in FY 2024-25 as against the Excellent Target of 95.5%.
7.3 Safety Training & Awareness
Your Company is having world class training institutes located at Noida and Jaipur to impart Technical, Behavioural, Management & Functional Training to its regular employees.
HSE Training and Awareness in your Company has been identified as one of the key drivers and significant elements of HSE Management System with an objective to train employees with the knowledge and skills to identify and manage workplace hazards, follow safe work practices and respond effectively to mitigate emergencies. An Internal Operational and Safety Training System at O&M installations level has been established, in accordance with OISD & PNGRB Codes/ Standards to provide structured training to various levels of employees and other stakeholders.
7.4 Safety Audits
Your Company undertakes various External and Internal Safety Audits of Installations & construction sites to identify the gaps with respect to applicable Codes & Standards and identify the improvement areas, if any. Audits of installations/facilities are carried out in accordance with the applicable Central and State Regulations:
• Oil Industry Safety Directorate (OISD), also conducts Safety Audits of Gas Processing Plants, Petrochemicals and NG/LPG Pipelines to check the conformity with various OISD Standards and Guidelines. Accordingly, OISD has conducted 06 nos. of External Safety Audits of GAIL installations during the FY 2024-25.
• Technical and Safety Audits of GAIL, LPG Storages and Handling facilities, NG/LPG Pipelines and CGD Networks are being carried out by Third Party Inspection Agency (TPIA) duly approved by PNGRB to ensure compliance w.r.t applicable PNGRB Regulations. 05 nos. of PNGRB T4S Audits carried by approved TPIAs for GAIL installations during the FY 2024-25.
• External Safety Audit (ESA) of major installations is carried out once in a year in line with Manufacture, Storage & Import of Hazardous Chemical Rules (MSIHC), 1989. 33 nos. of ESAs other than OISD and PNGRB have been carried out during the FY 2024-25.
Compliance Report on ESA are being submitted to OISD, PESO & PNGRB, periodically.
Your Company has established structured procedure to carry out Internal Technical and Safety Audit of O&M Facilities. Internal Audit (Proactive Safety Audit and Internal Audit- Corporate) is being conducted at least once in a year by inhouse team to identify the improvement areas w.r.t PNGRB and other regulations, OISD Standards, Management Governance etc. 25 nos. of Internal Technical and Safety Audits covering Pipelines and Gas Processing Plants carried out by Corporate Team during the FY 2024-25. In addition to the above, 02 nos. of Electrical Safety Audits and 02 nos. Environment Audits of O&M installations were undertaken to ensure various compliances with regard to HSE aspects.
7.5 Occupational Health
Your Company has formulated occupational health guidelines to implement occupational health, hygiene measures and medical surveillance programs to monitor and enhance occupational health of employees. The Corporate Occupational Health Committee meets once in a quarter to evaluate the effectiveness of the Occupational Health Programs in GAIL. Occupational Health Audit was also conducted by in-house multi-disciplinary teams at Natural Gas Compressor Station at Chhainsa and Kailaras in the FY 2024-25 to check the effectiveness of Occupational Health System/facilities.
Occupational Health check-up of regular employees was also conducted during the FY 2024-25.
7.6 HSE Initiative and Achievements
Your Company has taken various initiatives to further improve HSE Management System. Some of the important HSE initiatives and achievements are:
• 10th day of every month was observed as "Monthly Safety Day" at various Operation & Maintenance (O&M) installations in your Company during the FY 2024-25. On this day, the Officer-In-Charges (OICs) of all installations reviewed all the safety related aspects of their installations under their jurisdiction.
• 07 nos. of HSE Review Meetings were conducted at corporate O&M level to review HSE exceptions, nonconformities, if any and their time bound mitigation measures etc. to enhance the health, safety and integrity of assets.
• Sustainable Development Committee of Board also periodically reviews the HSE Performance and Emergency preparedness in respect of various installations of Company.
• All GAIL installations prepare Emergency Response and Disaster Management Plans (ERDMP) to prevent, control & manage any incident. In FY 2024-25, 11 nos. of ERDMP pertaining to various installations of GAIL got re-accredited by Third Party Inspection Agency (TPIA) of PNGRB, subsequently recommended by Sustainable Development Committee (SDC) and approved by Board of Directors prior to submission to PNGRB.
• GAIL Safety Culture Assessment Study carried out to determine the way forward for taking actions to further enhance Safety at our workplace.
• An initiative has been taken to improve the Contractor Safety Management System under Third-Party Services element of GAILs Health, Safety and Environment Management System for better compliance of Safety requirements by the Contractor.
• Standardization of procedures are one of the key initiatives of Corporate HSE Department. In this regard, your Company has undertaken revision of Technical Specification of PPEs, Incident Reporting System of GAIL, Fire Protection Manuals & Revision of Disaster Management Plan of GAIL aligning with Disaster Management plan of MoP&NG from time to time.
• Online Trip Interlock Bypass System developed with an aim to maintain the list of trip interlocks in SAP System, Initiation, Process & Approval for Trip Interlock Bypass and its normalization through guided Online Process along with necessary workflows and maintaining real time data for bypassed Trip Interlocks across GAIL installations.
8. INNOVATION, RESEARCH AND DEVELOPMENT
Your Company is steadfast in its commitment to fostering innovation and R&D capability for a sustainable and energy- secure future. Accordingly, our Research and Development (R&D) strategy is anchored in fostering technological excellence, driving operational efficiency and supporting Indias clean energy transition. During the year, GAIL earmarked and invested more than 2% of its PBT in R&D and innovation initiatives, supporting a range of strategic projects and collaborations with leading academic and research institutions. With the Boards approval for establishing a world-
class R&D Centre at IMT, Sector 22, Sohna, Haryana spread across 30 acres, your organisation is poised to significantly scale its innovation capabilities. This upcoming facility will serve as a hub for seven key research verticals, reinforcing our commitment to technological leadership and future-readiness in the evolving energy landscape.
Further, in line with our commitment, GAIL has continued to prioritize key collaborative research efforts for the current financial year. Focus areas include hydrogen studies, pipeline integrity management and carbon dioxide capture. These projects are being undertaken in partnership with institutions such as BITS Pilani, various IITs and CSIR laboratories.
In hydrogen related studies, GAIL is advancing a research work in collaboration with BITS Pilani, Goa on sustainable high purity hydrogen production, using Chemical Looping Combustion (CLC) in a packed reactor. This innovative process utilizes a metal oxide-based oxygen carrier to facilitate combustion without direct contact between fuel and air, effectively reducing CO2 foot print in hydrogen production. Furthermore, a membrane reforming research project is being undertaken in collaboration with IIT-BHU to develop a high purity hydrogen generation system. The project aims to optimize a compact, energy-efficient and scalable reforming unit that converts Natural Gas into hydrogen through advanced catalytic processes and membrane separation technologies. In addition, in collaboration with CSIR-Indian Institute of Petroleum (IIP), Dehradun, a study on the impact of Hydrogen Enriched Natural Gas (HENG) on the thermal performance of domestic cooking burners is being carried out. This study will also provide valuable insights for the commercial deployment of hydrogen-blended Natural Gas in domestic applications supporting Indias transition to a low-carbon energy economy while maintaining safety and performance standards.
In the area of pipeline integrity management, our focus remained on advancing corrosion mitigation strategies and developing alternative Sulphur-free odorants for Natural Gas applications. In this aspect, GAIL in collaboration with IIT Patna, is conducting a study on internal corrosion in Natural Gas pipelines caused by the carryover of Tri-Ethylene Glycol (TEG). This study aims to investigate the mechanisms of TEG induced corrosion, assess its impact on pipeline integrity and develop mitigation strategies to enhance the safety and longevity of gas transportation infrastructure. Similarly, the impact of various LPG quality parameters such as moisture, Sulphur compounds and other contaminants on pipe line corrosion is being studied in association with CSIR-IIP, Dehradun in a combined approach involving experimental works and simulation studies. This combined approach shall enable us a comprehensive evaluation, allowing for improved corrosion mitigation strategies, enhanced pipeline lifespan and better regulatory compliance. In parallel, another corrosion study with CSIR- CECRI Karaikudi explore the correlation between pig residue composition and quantity with the internal corrosion rate in Natural Gas and LPG pipelines. This study is expected to help us to develop predictive models for proactive maintenance, optimize corrosion management strategies for Natural Gas and LPG pipelines. Further, your Company in association with IIT-Madras is involved in development of sulphur free odorant that focuses on identifying novel, non-toxic and thermally stable odorants with high olfactory sensitivity, ensuring they meet safety regulations while minimizing environmental impact.
CO2 adsorption from flue gases emitted by Natural Gas turbines holds significant importance in addressing environmental concerns and advancing sustainable energy practices. In this aspect, GAIL in collaboration with BITS Pilani, Hyderabad is focusing on developing a scalable and energy-efficient CO2 removal technology that is also moisture-resistant, making it ideal for Natural Gas turbine flue gas streams.
In addition to collaborations with leading research institutes, your Company has also joined hands with other Central Oil and Gas PSUs to establish a Centre of Excellence for Oil, Gas and Energy (CoE-OGE) at IIT Bombay whose tenure was extended for another 5 more years from 2024 to 2029. This Centre aims to enhance the capabilities of Oil & Gas sector executives through advanced training programs, while also developing cost-effective and practical solutions to industry challenges through mission-mode initiatives.
Your Company also undertakes various technological modernization efforts under its innovation initiatives, aimed at enhancing the safety, efficiency, sustainability and cost- effectiveness of plant operations.
During the year, your Company filed two new Indian patent applications. As of now, GAIL holds a total of 37 active patents comprising 34 under the Indian category and 3 under the foreign category covering a range of novel concepts, products and processes developed through our collaborative research efforts.
9. TOTAL QUALITY MANAGEMENT
Your Company is committed to enhance customer satisfaction and standardizing business processes through the implementation of Quality Management System. Your Company endeavours for continual and sustainable improvement through the implementation of effective quality practices, innovation and standardization. Quality Management System and Energy Management System have been implemented along various Pipelines and process units, also at corporate and marketing offices. Your Company undertakes Quality Circle Projects with engagement of its employees resulting in high employee morale and increased productivity. Voice of customers is being captured through Customer Value Management and Customer Satisfaction Index surveys. Your Company is proud to share that Customer Satisfaction Index for FY 2024-25 is 92%.
10. SUSTAINABILITY INITIATIVES
Your Company firmly believes in integrating Environmental, Social and Governance (ESG) across its value chain and aims at contributing to create a better world for the next generation. Your Company, being Indias top gas transmission and distribution entity, is dedicated towards advancing the Countrys energy sector in a sustainable way, by incorporating sustainability in its operations and decision making. Sustainability is a method of creating long term value by examining Companys operations in terms of the ecological, economic and social elements. The Companys sustainability roadmap has been carefully crafted based on Indias Nationally Determined Contribution strategy for clean and accessible energy and the rising demand for Natural Gas in the Country.
Being a responsible energy Company and to further accelerate its decarbonization goals, your Company has advanced its Net Zero emission target by 05 years and aims for 100% reduction in Scope-1 & Scope-2 emissions by the year 2035. The roadmap has been developed after conducting a detailed study on "Science-based Net-Zero Ambition and Action Plan". Your Company has been once again included in the FTSE4Good Index Series as a part of the London Stock Exchange Group Sustainability Index which demonstrates strong ESG practices in the Oil & Gas Sector.
Your Company has entered into a Memorandum of Understanding (MoU) with M/s A M Green for jointly developing Renewable Energy up to 2.5 GW and Green Chemical Projects. The Company has also entered into a MoU with the Centre of Excellence in Oil, Gas and Energy (CoEOGE) under the aegis of IIT Bombay for conducting study titled "Decarbonization of Petrochemical, Gas Processing and Petroleum Refineries: Technology evaluation and Life Cycle Assessment" in line with its Net Zero Vision.
11. ENVIRONMENT PROTECTION AND CONSERVATION/RENEWABLE ENERGY
DEVELOPMENTS
Your Company prioritizes the creation and maintenance of a safe and pristine environment through the implementation of a certified Integrated Management System. This system encompasses Quality Management, Environment Management, Energy Management and Occupational Health & Safety Management. As a leading energy enterprise, your Company is steadfast in its commitment to spearhead the journey towards a sustainable energy landscape for our nation. With Corporate HSE Policy and Sustainable Development Policy in place, our aim is to prevent environmental degradation while ensuring continued growth aligned with sustainable best practices. Your Company is dedicated for benefiting communities, preserving the environment and serving stakeholders responsibly. Sustainability Development Committee supports the Sustainable Development Policy directives and is accountable for executing the Companys sustainability ambitions and management of relevant risks and performance.
Your Company by virtue of its business in the Natural Gas sector & other renewable energy sources etc. plays a pivotal role in driving the transition towards a low-carbon economy. Your Company has made substantial strides in reducing carbon emissions through the establishment of extensive cross-Country pipeline networks. This infrastructure facilitates the supply of Natural Gas as a cleaner fuel and feedstock to various industries such as Power Generation, Fertilizer Production, City Gas Distribution (CGD) and others. Natural gas emits 19-28% less carbon dioxide (CO2) than conventional fuels and produces fewer greenhouse gases throughout its lifecycle. Moreover, unlike coal, the purification process of
Natural Gas requires minimal water usage and poses no threat to groundwater contamination. In its gaseous state within pipelines or as a liquid in closed cryogenic vessels, Natural Gas transportation is environment friendly, with negligible air pollution. When utilized in power generation or as a transportation fuel, Natural Gas emits minimal Sulphur dioxide (SOx), Nitrogen oxides (NOx) and Suspended Particulate Matter (SPM) compared to alternative fuels. The widespread adoption of Natural Gas offers significant benefits to local air quality and public health by reducing harmful emissions.
Your Companys Operation and Maintenance (O&M) installations adhere to the regulations outlined in the Environment (Protection) Rules and operate under valid Environmental Clearance issued by the Ministry of Environment, Forests & Climate Change. Air and Water consents along with authorization for generation of hazardous wastes have been obtained from respective State Pollution Control Boards, ensuring compliance with relevant environmental standards. Environmental parameters are systematically monitored by both in-house team as well as independent third party agencies using state-of-the-art technological instruments. Reports are regularly submitted to the respective State Pollution Control Boards based on these assessments. To uphold effective environmental management systems, process plants and pipelines undergo routine audits. Given our reliance on Natural Gas for feedstock and fuel, pollutant emissions remain consistently below national standards. Adequate stack height has been provided for the effective dispersion of pollutants. Low NOx burners are used in all the furnaces and boilers. Loading facilities are equipped with vapor return circuits to further minimize emissions. Your Companys Petrochemical complex at Pata and Vijaipur have the facility of monitoring stack air and ambient air on continuous basis. State-of-the- art permanent ambient air monitoring stations measure Sulphur dioxide, oxides of Nitrogen, hydrocarbons, Carbon monoxide and noise levels on a real time basis. These initiatives underscore our commitment to environmental stewardship and regulatory compliance.
Your Company remains steadfast in its commitment to environmental and biodiversity conservation across its diverse business sectors. Significant efforts are dedicated to afforestation across all major installations, ensuring the establishment and maintenance of green belts. These areas serve as habitats for a diverse array of native flora and fauna. Additionally, large water reservoirs within these green belts support a variety of aquatic life. Collaborating closely with local authorities, a scientific approach is used in nurturing and preserving these green belt areas. Regular surveys as well as
studies pertaining to environment and ecology of the area in and around GAIL units are conducted to ensure prevention and timely mitigation of environmental issues.
Your Company always encourages and supports innovative and smart approaches to conserve water at sites through various water management initiatives such as reduction of freshwater consumption, rainwater harvesting system/ rainwater collection system, monitoring and management of waste water discharge, waste water treatment and recycling system based on our Environmental Policy, Local, Regional and National Guidelines. Your Company considers water as a precious natural resource and hence its consumption is closely monitored and controlled. Further, state-of-the- art technologies have been adopted to reduce and treat the waste-water generated. Your Company maximizes the concept of reuse and recycle of water. Discharge at all locations is compliant to the norms of the respective State Pollution Control Boards. Your Companys operations at all locations are state-of-the-art and involve clean technologies. Adequate treatment and reuse of treated waste water is adopted across the Company. Treated effluent water is recycled and used in-house for horticulture purposes within plant and township premises. Furthermore, GAIL is committed to efficient waste management, meticulously segregating, treating and disposing of waste according to its classification as hazardous or non-hazardous. Regular analysis of water and wastewater samples is conducted both internally and by external laboratories to ensure adherence to quality standards and regulatory requirements.
Your Company has embarked upon various initiatives aimed at enhancing energy efficiency through streamlined management processes. These efforts encompass the adoption of efficient technologies through both replacement and retrofitting, implementation of best practices, provision of energy efficiency training and workshops and the incorporation of measures focused on climate change adaptation and mitigation. Monitoring energy consumption, conducting energy audits and implementing energy efficiency measures became easier by our highly efficient Integrated Energy Management System. By leveraging these initiatives, your Company is committed to optimizing energy usage, reducing environmental impact and contributing to sustainable development goals.
In addition to the above, significant initiatives/achievements that have been taken by your Company during FY 2024-25 are:
• Net Zero Road Map of GAIL:
In line with Indias vision to achieve Net Zero by 2070, your Company completed a comprehensive study on "Science- based Net Zero Ambition and Action Plan". Further, GAIL advanced its Net Zero emission target by five years to achieve 100% reduction in Scope-1 and Scope-2 emissions by 2035 and 35% reduction in Scope-3 emissions by 2040.
• Extended Producer Responsibility (EPR) compliance under Plastic Waste Management (PWM) Rules, 2016:
- GAIL Pata is registered as an importer with the Uttar Pradesh Pollution Control Board under Plastic Waste Management Rules, 2016.
- Extended Producer Responsibility (EPR) obligations as Brand Owner and importer fulfilled by procurement of EPR Certificates as per the Annual EPR Target.
• Zero Liquid Discharge (ZLD):
ZLD project is being implemented at Pata at a cost of 469.50 crore. Site enabling activities have been completed and LSTK tender for setting up the facilities has been awarded to M/s VA Tech Wabag after competitive bidding with an overall duration of 29 months. Vendor has been mobilized at site & construction of facilities under progress.
• Green Hydrogen Project:
In line with Governments push for green energy, GAIL has installed its first Green Hydrogen Plant at GAIL Vijaipur in Madhya Pradesh, which was inaugurated by Shri Pankaj Jain, Secretary, Ministry of Petroleum & Natural Gas. This Green Hydrogen plant is having a capacity of producing 4.3 TPD of Hydrogen, through 10MW PEM (Proton Exchange Membrane) Electrolyzer unit, by electrolysis of water using renewable power.
• GreenCo Rating:
GAIL JHBDPL-Ranchi, KKBMPL-Kochi and Dabhol-Bengaluru Pipeline have received CII GreenCo Platinum certification and GAIL Pata has been awarded with GreenCo Gold Rating. Additionally, five other GAIL sites (Jhabua, Vijaipur, Gandhar, Vaghodia & VSPL) have been awarded with GreenCo Silver rating.
• Plantation:
05 Tripartite Agreements have been signed by GAIL with Divisional Forest Officer, Guna and respective Chairman of Forest Committees on 04.04.2025 at Guna (M.P). Under this project, plantation of 75,000 nos. trees shall be carried out over an area of 150 Hectares. GAIL undertook extensive plantation programme through which trees have been planted in FY 2024-25.
• Life Cycle Assessment (LCA):
Life Cycle Assessment (LCA) study has being carried out for Polymer & LHC products, for identification of environmental hotspots through IIT Bombay.
12. INTERNAL CONTROL SYSTEMS & THEIR ADEQUACY
Your Company has distinct and efficient Internal Control Systems in place. It has clearly defined organizational structure, manuals and standard operating procedures for its business units and service entities to ensure orderly, ethical and efficient conduct of its business. The Companys internal control system ensures efficiency, reliability, completeness of accounting records and timely preparation of reliable financial and management information. Internal financial controls framework and Risk Control Matrix (RCM) for various business processes is in place and reviewed continuously by the management. In addition, it also ensures compliance of all applicable laws and regulations, optimum utilization and safeguard of the Companys assets.
Your Company has independent and integral Internal Audit department having diligent professionals covering various aspects relating to commercial and technical domains. The Internal Audit department functionally reports to the Audit Committee and administratively reports to the
Director (Finance). The audit assignments are conducted as per the annual audit program approved by the Audit Committee. The Internal Audit team examines the effectiveness of internal controls through a risk-based audit of business processes. In congruence with the mission of internal audit "To provide comprehensive and quality audit services, which facilitates efficiency of business operation, enhance integrity of information and result in recommendations that improves operating procedures, to enable the Company to achieve its objective", the significant audit observations are reported to the management. The Audit Committee reviews the significant findings of Internal Audit and C&AG audit periodically.
13. CORPORATE SOCIAL RESPONSIBILITY (CSR)
Your Company as a socially responsible corporate, understands and acknowledges its responsibilities towards the communities, the environment and all other stakeholders involved in the process. CSR function at your Company aims to promote social good and integrate economic, environmental and social objectives with the Companys operations and growth. In alignment with the vision of your Company, the CSR initiatives strive to enhance value creation in the society and the communities in which it operates, through its services, conduct & initiatives, so as to trigger poverty alleviation, promote sustained growth for the society, the community and those at the bottom of the pyramid, with the long-term goal of contributing towards the development of prosperous and inclusive India.
Your Company has complied with DPE guidelines regarding spending on identified Thematic Areas, i.e. Health & Nutrition.
14. AWARDS & ACCOLADES
Your Company has been conferred with the following awards:
• "Initiatives in Promoting Hydrogen Company of the Year" Award in the prestigious FIPI Oil & Gas Awards 2023 held in New Delhi.
• Barauni-Guwahati Natural Gas pipeline has been conferred with the Construction Industry Development Council Vishwakarma Award 2024 in the category of Best Construction Project.
• Prestigious International Award for Training and Development by International Federation of Training and Development Organization.
• Vizag-Secunderabad Pipeline (VSPL) received "Platinum Award" at Apex India Green leaf Award 2023 for Environmental Excellence under Petroleum Storage & Transportation Sector.
• Corporate Responsibility Champion Award Rsin the Fossil fuel category, at the Outlook Planet Sustainability Summit & Awards 2024.
• Downstream India Excellence Awards for its Green Hydrogen Project at Vijaipur by Global Refinery and Petrochemicals Congress (GRPC) and Green Hydrogen Project of the Year India recognition at the Asian Oil & Gas Awards 2024 for setting up of Green Hydrogen plant at GAIL Vijaipur.
• One Decade Excellence in CSR RsAward for its contribution to community development initiatives through CSR over the past 10 years.
• GAIL Bengaluru has bagged the prestigious national Golden Peacock Occupational Health & Safety award (GPOHSA) by IOD for the year 2024 for Dabhol- Bengaluru Pipeline (DBPL).
• Second Prize for the excellent implementation of the Official Language policy for the year 2023-24 under the Rajbhasha Kirti Award scheme of the Department of Official Language, Ministry of Home Affairs, Government of India.
• Declared the Winner of the "Golden Peacock" Award by Institute of Directors (IoD) for Excellence in Corporate Governance for the year 2024.
• GAIL received the prestigious Governance Now 9th India PSU IT Award by Governance Now in the category of "Digital Transformation Excellence".
• GAIL Jhabua plant has received award by Economic Times - Energy Leadership in the category of "Energy Conservation Award Industry".
• GAIL was awarded the prestigious ET 2GOOD4GOOD rating by The Economic Times recognizing its exceptional performance in CSR.
• GAIL becomes the 1st PSU to be conferred with the coveted SAP ACE Award - 2024, for 2nd year in a row under the category "The Disruptor - Best Finance Transformation" for Trust Accounting migration to SAP TRM (Treasury and Risk Management) with effect from 1st April 2024 which enables real time PF card updates, automated interest income statements with improved accuracy and speed benefitting its 5000+ employees.
• "Initiatives in Promoting Hydrogen Company of the Year" Award in the prestigious FIPI Oil & Gas Awards 2023.
• GAIL Pata received first Prize in "Uttar Pradesh State Energy Conservation Awards".
• "Best Supporting Organization Award (PSU - Category)" by QCFI (Quality Circle Forum of India).
• Selected as a winner in the ICAI Sustainability Reporting Awards 2023-24.
• PPAC Greenfinch Data Excellence Award 2025 during 24th Foundation Day of PPAC.
• Honored with a prestigious trophy in the "Start-Up Excellence Award" under the category "Investment in Start-Ups" at the Governance Now Rs11th PSU Awards 2025.
• Award from ICAI for excellence in BRSR reporting FY 2023-24.
• Golden Peacock Business Excellence Award Rsfor the year 2025 in recognition of overall Business Performance and exceptional contribution towards Business sustainability.
• Honored with the PSE Excellence Award 2025 in the Document Management category at the India PSE Summit 2025.
• GAIL Pata declared winner of Diamond Award Rsunder Apex India Green Leaf Award 2024 Rsfor Environment Excellence Rsin Petrochemical Sector.
• JLPL Loni Region has been conferred with the prestigious Platinum Award Rsunder the Apex India Safety Award 2024 for excellence in Safety Culture.
• Prestigious award for Community Health Initiatives - Project Arogya under GAILs CSR initiative at the Transform HSE Leadership and Excellence Award 2025.
• Honoured with prestigious 3rd PSU Transformation Awards 2024 under the Category Digital Transformation Award for Implementation of Vendor Invoice Management Systems.
• Director (Finance), Shri R. K. Jain, has been conferred as the "Best CFO of India - Gas Sector (Large Cap Category)" for the year 2024 by Dalal Street Investment Journal.
• Director (Finance), Shri R. K. Jain, has been conferred with honorary award "Top 50 Visionary CFO of India" by BHARAT 24 News to be hosted at National Economic Growth Summit 2024.
• Director (Finance), Shri R. K. Jain, conferred with "CFO of the Year Award" at 11th National Awards for Excellence on in Award ceremony organised by the World HRD Congress.
• Director (Finance), Shri R. K. Jain, has been selected as the "CFO - Outstanding Performer Award" under the category "Public - Manufacturing - Mega".
• Director (Projects), Shri Deepak Gupta was conferred upon Honorary Fellowship Award 2024 at 32nd Global Symposium & 6th World Project Management Forum (WPMF) by Centre for Excellence in Project Management (CEPM) and i2P2M.
• Director (HR), Shri Ayush Gupta received the prestigious Titan-Human Development Award.
• Shri Ayush Gupta, Director (HR), GAIL recognised as one of the Top HR Thought Leaders of 2025 by The Economic Times HR World for his visionary leadership in transforming HR into a strategic pillar and core strength of the business.
CAUTIONARY STATEMENT
Statements in the Boards Report and Management Discussion & Analysis, describing the Companys objectives, strategies, projections and estimates, expectations, etc. may be "forward looking statements" and progressive within the meaning of the applicable laws and regulations. By their nature, forward looking statements require your Company to make assumptions and are subject to inherent risks and uncertainties. Forward looking statements which involve a number of underlying identified/ non-identified risks and uncertainties that could cause actual results to differ materially from the expectations. Critical factors that could influence the Companys operations include global and domestic demand and supply conditions, changes in Government regulations/tax laws, economic developments within the Country and factors such as litigation and industrial relations. Since the factors underlying these assumptions are subject to change over time, the estimates on which they are based, are also likely to change accordingly. These forwardlooking statements represent only your Companys current intentions, beliefs and expectations. Your Company assumes no obligation to revise or update any forward looking statement, whether as a result of new information, future events, or otherwise. Readers are cautioned not to place undue reliance on the forward-looking statements.
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Capital Services Support WhatsApp Number
+91 9892691696
Download The App Now
Follow us on
2025, IIFL Capital Services Ltd. All Rights Reserved
IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248, DP SEBI Reg. No. IN-DP-185-2016, BSE Enlistment Number (RA): 5016
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.