The Ministry of Petroleum and Natural Gas has proposed transferring GAIL’s stake in city gas distribution companies to GAIL Gas through a demerger or share transfer.Following the restructuring, GAIL Gas will be listed, with plans to dilute a minority stake through an IPO.
The proposed GAIL Gas IPO is expected to raise around ₹3,100 crore. In addition, partial equity divestment has been proposed for city gas distribution entities.
This move is part of the government’s Asset Monetisation Pipeline 2.0, under which CPSEs will divest stakes in their subsidiaries between FY27 and FY30.The proceeds from these stake sales will be retained by the CPSEs as monetised value.The government expects the GAIL Gas IPO to take place in FY28.Also read: National Monetisation Pipeline 2.0: How India aims to monetise ₹16.72 lakh crore via GAIL, Coal India, AAIIn the coal sector, Coal India is expected to dilute stakes in its subsidiaries, with a target of ₹48,350 crore through partial equity dilution.For the power sector, equity dilution of step-down subsidiaries of CPSEs has been proposed, with a target of ₹31,000 crore to be raised via IPOs and FPOs by 2030.The Airports Authority of India will divest stakes in one subsidiary and four joint ventures, aiming to raise ₹12,550 crore through IPOs, FPOs, or private placements.Separately, a redevelopment plan has been proposed for Hotel Ashok and Hotel Samrat.Redevelopment of Hotel Ashok is expected to begin in FY27, followed by Hotel Samrat in FY30. The monetisation value for both properties is estimated at ₹1,200 crore.The following is a summary of the asset classes under petroleum and natural gas being considered for monetisation under NMP 2.0:Asset classTarget
(₹ crore)Mode of
monetisation1Equity dilution of GAIL Gas3,100IPO/FPO2Dark optic fibre leasing 11,301 kms400Lease3Storage facilities for liquids & gases 10 MMTPA5,300BOOT4Discovered Small Fields (DSF)7,500PPP models
The values in the table are the consolidated target for awards between FY26 and FY30.First Published: Feb 24, 2026 10:28 AM IST
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