GAIL (India) rose 7.02% to Rs 423.95 at 10:38 IST on BSE on reports Petroleum and Natural Gas Regulatory Board has put up a consultation document on unified pipeline tariff proposing a 60% hike in tariff by the company.
Meanwhile, the S&P BSE Sensex was up 110.13 points, or 0.35% to 31,392.61.On the BSE, 5.01 lakh shares were traded in the counter so far, compared with average daily volumes of 6.43 lakh shares in the past one quarter. The stock had hit a high of Rs 428.40 and a low of Rs 417.60 so far during the day.
According to reports, Petroleum and Natural Gas Regulatory Board's (PNGRB) proposal for a uniform tariff for natural gas is not only expected to boost GAIL (India)'s earnings but will also make piped cooking gas cheaper for consumers away from the source.
PNGRB proposed a tariff of Rs 2 per standard cubic metres, 60% higher compared to the average tariff earned by state-run GAIL in the year to March. It has a network of more than 10,000 kilometres of natural gas pipeline in India. The unified tariff will bring parity to the cost of gas across networks, ensuring a return on capital employed of 12% for the pipeline transmission companies. Gujarat State Petronet, which owns and operates two inter-connected gas networks in Gujarat, will also benefit from the proposed tariffs.
GAIL (India)'s net profit fell 23.2% to Rs 1025.64 crore on 6.7% growth in net sales to Rs 11406.47 crore in Q1 June 2017 over Q1 June 2016.
GAIL (India) is India's largest natural gas company. The government of India (GoI) held 54.43% stake in the firm as per the shareholding pattern as on 30 June 2017.
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