- Arts & Entertainment
- All Stories
Business & Economy
GAIL acquires 5% stake in Indian Gas Exchange
New Delhi, February 10, 2021
The public sector GAIL (India) Limited today said it had signed a Share Purchase and Shareholders Agreement (SPSHA) with Indian Gas Exchange (IGX) and Indian Energy Exchange Limited (IEX), the promoter and parent company of IGX, for acquisition of 5% equity stake in IGX.
IGX, India's first automated delivery-based gas trading platform, was launched by Petroleum & Natural Gas Minister Dharmendra Pradhan in June 2020 after which PNGRB notified the Petroleum and Natural Gas Regulatory Board (Gas Exchange) Regulations, 2020.
IGX has secured the necessary authorization to operate as a Gas Exchange under the regulations for a period of 25 years. GAIL is already a member of IGX and has now also joined as a shareholder.
Santanu Roy, Executive Director (BD & CA), GAIL, Rajesh Kumar Mediratta, Director, IGX and Vineet Harlalka, CFO and Company Secretary, IEX signed the SPSHA.
M V Iyer, Director (Business Development), GAIL, “GAIL has always been committed to and leading the growth of the gas industry in India. GAIL is already among the initial members of IGX and is pleased to be an equity partner of IGX. As the country leaps forward to build a sustainable energy economy, the partnership between GAIL and IGX is an endeavour towards further development of gas markets.”
A press release from GAIL said that, in order to increase the share of natural gas in the primary energy mix of the country, the Government is promoting Gas Trading Exchanges where natural gas can be supplied and traded through an efficient market-based mechanism.
"It is expected that this partnership will play a role in achieving the Government of India’s vision for increasing the share of natural gas from 6 percent to 15 per cent," it added.
IEX, a publicly listed company with NSE and BSE, is the first and largest energy exchange in India providing a nationwide, automated trading platform for physical delivery of electricity, renewable power, renewable energy certificates and energy saving certificates. IEX, operating since 2008, is approved and regulated by Central Electricity Regulatory Commission.
Established in 2020, IGX is a subsidiary of IEX, and is the first automated national-level trading platform for physical delivery of natural gas. IGX is also the first gas exchange in the country to have secured authorisation from Petroleum and Natural Gas Regulatory Board (PNGRB) under the Gas Exchange Regulations, 2020.