As GAIL completes its glorious 35th year it gives me a great pleasureand an enormous amount of pride to present to you the highlights of spectacularachievements witnessed by your company in the year 2018-19.
Global energy consumption in 2018 increased at nearly twice the averagerate of growth since 2010 primarily driven by a robust global economy and higher heatingand cooling needs in some parts of the world. Higher electricity demand was responsiblefor over half of the growth in energy needs. Demand for all fuels increased led bynatural gas even as solar and wind posted double digit growth. As a result of higherenergy consumption CO2 emissions rose by 2% last year and hit a new record. India sawprimary energy demand increase by 8% i.e. around 60 Million Tonnes of Oil Equivalent(Mtoe) accounting for 15% of global growth the third-largest share. Growth in India wasled by coal (for power generation) and oil (for transport) the rst and second biggestcontributors to energy demand growth respectively.
Your Company's growth continues
Your Company recorded highest ever turnover and PAT in its history asturnover surged by 39 % and Pro t after Tax (PAT) increased by 30%. Further as a resultof the increase in PAT Earnings per share (EPS) has gone up by 30.5%. Net worth also roseto Rs. 39062 crore as compared to previous year where it stood up to Rs. 35142 crore.The Debt and interest coverage ratios indicate a healthy nancial position and good marketcapitalization and thereby encouraging the Company to venture into new projects.
I am glad to inform you that your company's Board has approvedrevival of existing LPG plant at Usar Maharashtra by converting it into 500 KTAPolypropylene (PP) complex at an investment of around Rs. 8800 Crore. This is rst of itskind project in India which would be using Propane Dehydrogenation technology forproduction of Propylene integrated with the downstream Polypropylene (PP) unit. FurtherGAIL Board has also approved setting up of 60 KTA PP unit at existing Petrochemicalcomplex at Pata. Addition of above PP capacities will augment and complement GAIL'scurrent polymer portfolio which is presently dominated by Polyethylene (PE).
In coming few years your company shall be making investment of aroundRs. 45000 Crore in major cross country pipeline projects such as Urja Ganga ProjectKochi Kootanad Banglaore Mangalore Pipeline Indradhanush Gas Grid (North East Grid injoint venture mode) and other pipelines connecting crucial supply and demand centers forcompletion of the envisaged National Gas Grid (NGG). As part of this endeavor yourcompany has recently been authorized by PNGRB to lay Srikakulam Angul natural gas Pipelineof length 690 KM including spurlines through recently concluded bidding process. Thispipeline will extend the reach of natural gas in the Eastern coast and will act as animportant connecting limb with other pipelines of National Gas Grid (NGG).
A sneak peek into the signi cant
performance in the various business segments
Your Company catalogued substantial growth in all its business segmentsfor the FY 2018-19. Natural Gas which is the core area of your company had salesincreasing from 85.01 MSCMD last year to 96.93 MMSCMD including international LNG sales.Growth in natural gas transmission has been over 2% with average transmission of 107.43MMSCMD. Petrochemical sales increased to 735 KT from 674 KT in 2017-18. Consequentlygross revenue of your company from Petrochemicals in FY 18-19 increased by 15%. In the LPGTransmission segment throughput of Jamnagar-Loni and the Vizag-Secunderabad pipelinenetworks improved to an overall of 3.97 MMTPA from 3.7 MMTPA as compared to previous year.Total liquid hydrocarbon production was about 1.32 Million MT of which almost 90%constituted LPG and Propane. In the Exploration and production segment Revenue of Rs. 639Crores has been generated from sale of hydrocarbons from 4 producing blocks during theyear 2018-19. The total volume sold to City Gas Distribution sector continued to showpositive growth. GAIL is currently supplying domestic gas to the tune of 13.19
MMSCMD to the City Gas Distribution (CGD) sector.
Our alliances & new ventures emerge stronger and pro table asbefore
Your Company oated two new Joint Venture Companies namely Bengal GasCompany Limited in West Bengal for city gas distribution and Indradhanush Gas Grid Limitedin Assam to lay down natural gas pipelines. Gas supply through pipeline and cascades hascommenced in Varanasi Bhubaneswar Cuttack and Patna in this nancial year. Apart fromthat your Company has already been awarded six cities for distribution of gas as part ofURJA Ganga project namely Varanasi Bhubaneswar Cuttack Patna Ranchi and Jamshedpur.
Some Noteworthy achievements during the year
Your Company achieved Excellent' MoU rating for the nancialyear 2017-18 with a score of 92.76 from MoP&NG and same rating is expected to be seenfor 2018-19 also. It has also got the highest domestic credit rating in India which is AAAfrom ICRA CARE and India Rating.
Your Company has adopted a two-pronged approach including physicalnetwork expansion and downstream market development through customer focus. To increasetransparency and ef ciency an online portal has already been established to book pipelinecapacity online on rst come rst serve basis. Over 1000 Capacity Tranche (CT) requests havebeen successfully executed during FY 2018-19 through the portal. This has been the rstsuch Open Access Portal implemented by any gas transporter and customers and stakeholdershave appreciated the step taken to leverage technology for increasing ease of business andtransparency.
Your Company's subsidiary and joint venture companies engaged inCity Gas Distribution (CGD) have participated and won 15 Geographical Areas in the 9thround of CGD Bidding and 8 Geographical Areas (GAs) in the 10th round of CGD bidding.After conclusion of the last two rounds of bidding GAIL its subsidiary and Joint VentureCompanies are now authorized to operate in 62 out of the 228 GAs across the country.
Women empowerment and safety at workplace continues to be stronglypromoted and as on March 31 2019 the workforce comprised of 284 women in your Companyhaving no complaints with regard to Sexual Harassment of Women at Workplace.
Corporate Vigilance department of your Company carried out certainprocess improvements for effective utilization of its resources thereby ensuring overallgood governance. GAIL's Corporate RTI Cell has achieved 100% disposal rate in respectof RTI Applications received for FY 2018-19. The Committee of Parliament on Of cialLanguage appreciated your Company's efforts in Promoting and Implementing Hindilanguage successfully every year.
Recently your company's Board of Directors approved GAILCorporate Strategy that charts out the path of growth for next ten years. GAIL shallcontinue to lay focus on the growth of existing core business segments - natural gaspetrochemicals and gas processing. Further GAIL shall be striving to look for diversi edand fresh business opportunities which have the potential to become new growth engine infuture. GAIL shall be exploring new domain of high growth specialty chemicals for settingup of manufacturing capacity in India. Given the imminent disruptions in the eld of energyand transport your company is exploring opportunities and business potential in newtechnological areas.
|B. C. Tripathi |
|Chairman & Managing Director |