In India’s pledge of going carbon neutral by 2070, the country made to the world, a lion’s share of responsibility comes down on the shoulders of the oil & gas industry.
Being one of the leading oil & gas companies of 2025, the mantle of helping the industry in living up to its promise has been taken upon itself by GAIL Gas Limited.
In an exclusive interview with Insights Success India, the company’s Chief Executive Officer, Goutom Chakraborty, spoke in detail about what makes GAIL Gas one of India’s topmost energy companies, its achievements, contribution to the nation-building, and plans to ensure that India becomes sustainably self-reliant in the energy sector soon.
Sir, GAIL Gas Limited has established itself as a significant player in India’s City Gas Distribution (CGD) sector. How do you define your company’s core mission in this evolving energy landscape, and what makes GAIL Gas a “leading company to watch” in 2025?
Established in 2008, GAIL Gas Limited has grown into a prominent force in India’s City Gas Distribution (CGD) landscape. With a mission to provide clean and reliable energy, the company started operations in just four cities and now holds authorisation for CGD in 16 Geographical Areas (GAs) across nine states. Through six joint ventures, GAIL Gas is also actively engaged in CGD projects in Andhra Pradesh, Rajasthan, Gujarat, Uttarakhand, North Goa, and Assam.
Currently, GAIL Gas supplies natural gas to over 1.1 million households, nearly 5,000 industrial and commercial units, and operates more than 660 CNG stations, including those run by joint ventures. In FY 2024–25, the company recorded its highest-ever turnover of ₹12,231 crore, an EBITDA of ₹815 crore, and a profit after tax of ₹451 crore.
Notably, two of our GAs—Taj Trapezium Zone (TTZ) and Bengaluru—report daily gas sales exceeding 1 MMSCM, highlighting our operational strength. Natural gas supply in TTZ plays a vital role in preserving the environmental sanctity of the world-famous heritage, the Taj Mahal.
The recent approval by the Board of GAIL (India) Limited to transfer six CGDs to GAIL Gas—pending government approval—will further enhance our scale and reach, solidifying our position as a “leading company to watch” in 2025 and beyond.
What are the key strategic pillars that GAIL Gas is focusing on to drive growth and maintain its leadership position within the highly competitive CGD market?
GAIL Gas’s growth strategy is anchored on four key pillars:
- Ensuring Uninterrupted Availability of Natural Gas: Our objective is to expand our reach across all our authorized areas to provide continuous, 24/7 natural gas supply to households, vehicles, as well as industrial and commercial customers.
- Affordability: Recognizing natural gas as the most environmentally friendly fossil fuel currently available, we are committed to maintaining its affordability, ensuring it remains accessible and cost-effective for our customers. One way we ensure this is by mixing the relatively economical gas made available to us under the Government’s Administered Price Mechanism (APM) with the costly gas imported in the form of Liquefied Natural Gas. The resultant price is affordable for more customers.
- Commitment to Net Zero by 2035: In alignment with our parent company, GAIL (India) Limited, we have set ambitious targets to achieve Net Zero Scope 1 and Scope 2 emissions by 2035. Additionally, we aim to reduce Scope 3 emissions by 35% based on a 2020-2021 baseline by 2040.
- Technology and Innovation: Leveraging advanced technologies is central to our growth. We have transitioned to a cloud-based SAP S/4 HANA platform to enhance operational efficiency in real time. Furthermore, we utilize modern communication channels such as WhatsApp and social media to engage proactively with our customers and improve their experience.
How does GAIL Gas contribute to India’s broader energy security goals and its transition towards a cleaner energy future?
Natural gas serves as a key transition fuel in India’s move toward a renewable-driven energy future. As the cleanest fossil fuel, it emits significantly fewer greenhouse gases. The Government of India aims to increase the share of natural gas in the energy mix from the current 6.5% to 15% by 2030, thereby reducing the nation’s oil import dependency, and to achieve Net Zero by 2070.
GAIL Gas plays a pivotal role in this transition through the rapid expansion of CGD networks. As urbanization and industrialization rise, our presence in strategic markets positions us to meet the growing demand for cleaner, safer, and more sustainable energy solutions.
What specific market opportunities do you foresee in the Indian CGD sector over the next 3–5 years, and how is GAIL Gas positioned to capitalize on them?
Several market opportunities are emerging in the CGD arena, and GAIL Gas is already working to capitalize on them:
- LNG for Long-Haul Transport: With only 20 LNG stations currently operational and a goal set by the Ministry of Petroleum & Natural Gas of converting one-third of long-haul vehicles to LNG, this segment is set for exponential growth. GAIL Gas is prepared to support this transition, having already commissioned an LNG station in Mandideep, Madhya Pradesh, and working to establish more.
- Industrial Shift to Clean Fuel: Regulatory pressures and cost advantages are driving industries toward natural gas. GAIL Gas’s growing industrial customer base, backed by robust infrastructure and service delivery models, offers scalability and reliability.
- Compressed Biogas (CBG): The SATAT initiative of the Government has highlighted CBG as a key renewable resource. To promote circular economy benefits, GAIL Gas has already started the integration of CBG into its existing networks in some areas and is exploring the possibility of expanding this usage further.
What is your strategy for expanding your network and ensuring efficient distribution of natural gas to diverse customer segments? GAIL Gas operates across various Geographical Areas (GAs) in multiple states. What is your strategy for expanding your network and ensuring efficient distribution of natural gas to diverse customer segments (domestic, commercial, industrial, transport)?
Our network expansion strategy prioritizes:
- Targeted infrastructure rollout across high-demand and underserved areas.
- Early-stage development in new GAs, supported by pre-commissioning surveys and expedited clearances.
- Strategic deployment of domestic PNG, industrial pipelines, and CNG/LNG stations to ensure reliable supply across customer segments—domestic, commercial, industrial, and transport.
How does GAIL Gas ensure the reliability and safety of its pipeline infrastructure and dispensing stations?
We have adopted a proactive, technology-driven safety framework, including:
- Deployment of digital tools for continuous monitoring and risk assessment.
- Pre-commissioning safety reviews and adherence to regulatory norms.
- Empowerment of personnel to identify and halt unsafe practices.
In FY 2024–25, we achieved a Health, Safety & Environment (HSE) score of 95.52, reflecting a significant reduction in incidents and a strong culture of safety across operations.
What are the key leadership and operational strengths that enable GAIL Gas to deliver clean, green, and safe energy consistently?
Our strength lies in the operational and managerial backing of our parent company, GAIL (India) Limited, which operates over 16,000 km of trunk pipelines across the country. This ensures gas availability in most of our operating GAs. We also leverage GAIL’s LNG sourcing capabilities to secure competitively priced gas from global markets.
What role do digital initiatives and technology adoption play in enhancing GAIL Gas’s operational efficiency, network management, and service delivery (e.g., smart meters, app-based services)?
Digital transformation is integral to our operations. Over the years, we have integrated many industry-first technologies, some of which are:
- CRM and Billing Automation: Ensures seamless service for domestic consumers.
- Smart Meters and App Services: Introduction of 40,000 smart prepaid meters is underway, with 2,000 units already deployed.
- Customer Engagement: WhatsApp invoice delivery, chatbot services, and e-invoicing simplify user interactions.
- Incident Management Systems: Enable real-time issue tracking and resolution across GAs.
- ERP Integration: Transitioned to SAP S/4 HANA Cloud, becoming probably the first CGD company to fully adopt this intelligent ERP system.
As a provider of natural gas, how does GAIL Gas integrate environmental responsibility and sustainability into its core business practices and future growth plans?
Sustainability is embedded in our ethos. At GAIL Gas, we have:
- A structured HSE Management System aligned with legal and industry benchmarks.
- Focus on occupational health, environmental protection, and safe practices.
- Adoption of technology and digital systems to enhance environmental performance.
We empower our workforce to uphold and report any deviation from safe or sustainable practices, fostering a positive and responsible HSE culture.
How does GAIL Gas engage with local communities in its operating areas to foster positive relationships and contribute to social development?
At GAIL Gas, we have always placed the local community at the heart of our operations. One of our initiatives that reflects this commitment is the ‘GAIL Gas Sahyogi’ scheme. Through this program, we actively involve members of the local community—such as shopkeepers, auto drivers, tea vendors, and others—by encouraging them to report any unauthorized digging near our pipeline infrastructure via dedicated helplines. This grassroots-level vigilance has significantly reduced our response time to potential threats and, in many instances, has helped prevent damage altogether. In recognition of their contribution, these ‘Sahyogis’ are acknowledged and appreciated for their proactive efforts.
Additionally, we engage in plantation activities in and around our project areas, further reinforcing our commitment to environmental stewardship and sustainable community development.
Besides these, our Corporate Social Responsibility (CSR) philosophy emphasizes inclusive growth. In FY 2024–25, we sanctioned 22 CSR projects with a total commitment of ₹9.94 crore, and an actual expenditure of ₹8.49 crore—exceeding the mandated 2% contribution. These initiatives focus on improving the quality of life for underprivileged communities in our operational areas.
One initiative that we are particularly proud of is the GAIL Gas Super 30 program, which has achieved outstanding success in its very first year. This flagship CSR initiative by GAIL Gas Limited offers free, comprehensive residential coaching to gifted yet underprivileged students at our Ranchi center—empowering dreams and transforming lives.
Out of 30 talented students, 24 have cleared the National Eligibility cum Entrance Test (NEET) 2025 for entrance to medical colleges, achieving an impressive 80% success rate in one of India’s toughest entrance exams.
GAIL Gas also contributed ₹ 5.4 crore to the ‘Namami Gange’ project of the Government, contributing to efforts to clean up the holy river.
How does GAIL Gas demonstrate its commitment to ESG principles? Given the increasing focus on ESG (Environmental, Social, and Governance) factors, how does GAIL Gas demonstrate its commitment to these principles in its operations and corporate strategy?
Aligned with our parent company, GAIL (India) Limited, we are committed to achieving Net Zero by 2035. This includes reducing Scope 1 and Scope 2 emissions by 2035, and reducing Scope 3 emissions by 35% from a 2020-2021 baseline by 2040.
All our business strategies are designed with ESG compliance at the core, supporting sustainable and responsible growth.
Our contribution to the ‘Namami Gange’ project and plantation activities in project areas is also part of our commitment to ESG principles.
The oil and gas sector requires specialized talent. How does GAIL Gas attract, develop, and retain a skilled workforce, ensuring a culture of safety, innovation, and high performance?
GAIL Gas benefits from the human resource policies of GAIL (India) Limited. Our workforce is drawn from GAIL and comprises experienced professionals with domain expertise in city gas distribution, which has been instrumental in fast-tracking project development and operational excellence. The GAIL Training Institute plays a crucial role in continuously enhancing the skills and knowledge of our workforce through regular refresher courses. This ensures that our human resources remain updated with the latest industry practices and standards.
In addition, GAIL Gas is actively engaged in local vendor development initiatives and the establishment of skill development centers within our GAs. These efforts not only help us secure a steady supply of trained personnel but also contribute significantly to the socio-economic development of the local communities we serve.
What challenges do you foresee in the CGD sector, and how is GAIL Gas preparing for them? What significant challenges do you anticipate for the CGD sector in India in the coming years (e.g., competition, regulatory changes, supply chain dynamics), and how is GAIL Gas preparing to address them?
The key challenges that face the CGD sector include:
- Volatility in LNG Prices: Rising dependency on spot LNG imports poses cost pressures. Long-term sourcing strategies and efficient operations are crucial to mitigate the impact.
- Land Acquisition Delays: Securing land and right-of-way approvals remains a bottleneck, especially in urban areas.
- Customer Awareness and Infrastructure Gaps: Lack of awareness, high conversion costs, and infrastructure shortfalls hinder faster adoption, particularly in smaller towns and industrial units.
- Delay in permissions: A key challenge, as our work involves laying underground pipelines that require approvals from multiple authorities. Often, these permissions are not granted in a timely manner, causing delays in project execution and, consequently, pushing back the supply of natural gas. Implementing a streamlined single-window clearance system could significantly alleviate this bottleneck and improve project timelines.
- Third-party damage: These are frequently caused by equipment operators, such as those operating JCBs. Despite clear markers delineating pipeline routes and the active involvement of community partners through our ‘Sahyogi’ program, these damages often go unreported. This results in gas loss and disruption of services, underscoring the need for enhanced awareness and stricter monitoring measures to mitigate such incidents.
We are addressing these challenges through strategic partnerships, community outreach, such as awareness campaigns to “call before you dig”, infrastructure expansion, and operational agility.
What is GAIL Gas’s long-term vision for its role in shaping India’s energy future? Looking beyond 2025, what is GAIL Gas’s long-term vision for its role in shaping India’s energy landscape and contributing to national progress?
The cornerstone of our operations lies in the supply of Natural gas, a futuristic and highly efficient fuel. Not only is Natural gas environmentally friendly, but it is also cost-effective and stands as the cleanest among the fossil fuels. It is the most appropriate bridge fuel as we move towards renewables.
Driven by our vision of a cleaner and greener tomorrow, GAIL Gas embraces an aggressive strategy. Our ultimate objective is to make clean and green energy easily accessible in our GAs, playing an integral role in realizing a sustainable & prosperous future for our society.