GAIL (India) Ltd is welcoming the Petroleum and Natural Gas Regulatory Board's (PNGRB) move to lower the zonal tariff structure from three to two zones. The move is intended to make operations simpler and increase revenue streams for pipeline companies, even though its overall impact might be minimal.
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Tariff Structure Modification: The decrease from three to two zones will simplify operations.
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Revenue Implications: Initial zones may see a 20-30% increase in tariffs, benefiting gas transmission companies.
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Stakeholder Consultation: PNGRB is soliciting feedback until April 11 before finalizing the new regulations.
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Market Response: GAIL's share price has surged, reflecting positive investor sentiment regarding these regulatory changes.
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Long-term Growth: The reforms are anticipated to foster a more favorable operating environment for GAIL and other industry players.
Source: Angel One, CNBC TV18, Trading View