According to the state-run firm, competition is not in the consumer’s interest and comes on the back of the Minister’s 6 October announcement he was against GAIL’s monopoly over the proposed 8,000 km National Gas Grid.

In a letter to Petroleum Secretary S.C. Tripathi, GAIL head Proshanto Banerjee wrote, “The revised draft on the National Gas Pipeline Policy that allows producers and importers of natural gas to lay pipelines to consumers might lead to skewed development of gas market in the country.”

“Keeping in view the similarities between the gas and power sectors, especially the transmission segment which is a natural monopoly, it is a well defined regulation rather than promotion of competition that has been found to be effective in protecting the interest of consumers.

“A study conducted by GAIL on the evolution of integrated gas grid in 38 countries accounting for two-thirds of the global gas consumption also overwhelmingly supports the single agency model,” he concluded.