GAIL (India) Limited has announced the approval of a merger scheme where Konkan LNG Limited (KLL) will be merged with GAIL. KLL, a wholly-owned subsidiary, operates an LNG regasification terminal. The merger aims to create a larger, vertically integrated entity, simplify group structure, and enhance operational efficiencies. KLL will be dissolved without winding up upon the scheme’s effectiveness, with its shares being cancelled.
GAIL (India) Approves Merger with Subsidiary
GAIL (India) Limited has received approval from its Board of Directors for a scheme of amalgamation with its wholly-owned subsidiary, Konkan LNG Limited (KLL). This strategic move is poised to consolidate operations and streamline the corporate structure.
Key Details of the Merger
The merger involves KLL becoming part of GAIL (India) Limited. For the fiscal year 2025-26, GAIL reported a turnover of approximately ₹1,41,483 Crore, while KLL’s turnover stood at ₹741 Crore. Konkan LNG Limited’s primary business is the ownership and operation of an LNG regasification terminal located in Dabhol, Ratnagiri, Maharashtra. GAIL’s core business encompasses the marketing and transportation of natural gas, petrochemicals, and liquid hydrocarbons.
Rationale and Impact
The primary rationale behind this amalgamation is to foster a larger and more robust vertically integrated entity. GAIL anticipates that the merger will simplify and rationalize its group structure, ultimately leading to enhanced operational efficiencies. As KLL is a wholly-owned subsidiary, the transaction does not fall under related party transactions conducted at an arm’s length. Upon the scheme becoming effective, KLL will be dissolved without being wound up, in accordance with Section 233 of the Companies Act, with its equity shares being cancelled.
Transaction Overview
There will be no change in the shareholding pattern of GAIL (India) Limited as a result of this merger. The Board of Directors of GAIL approved this scheme during a meeting held on July 31, 2026, which commenced at 12:00 noon and concluded at 01:55 p.m.
Source: BSE
