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India proposes GAIL Gas IPO in FY28 under ₹16.72 lakh crore National Monetisation Pipeline 2.0Under the proposal, the government expects an IPO of GAIL Gas in FY28 after GAIL (India) pares its holdings in CGD companies. The IPO could raise around ₹3,100 crore.By Sapna Das   |  Meghna Sen  February 24, 2026, 11:00:01 AM IST (Updated)3 Min ReadIndia has proposed a sweeping overhaul of GAIL’s city gas distribution (CGD) business — culminating in the listing of GAIL Gas Limited — as one of the more significant structural moves under the National Monetisation Pipeline (NMP) 2.0.

The IPO of GAIL Gas is expected in FY28 and could raise around ₹3,100 crore.

The Ministry of Petroleum and Natural Gas has outlined a plan to consolidate GAIL (India) Ltd’s scattered CGD holdings — currently housed across joint venture companies and subsidiaries — by transferring them to its subsidiary, GAIL Gas Limited, through a demerger or share transfer.

The restructuring aims to streamline operations and create a unified CGD platform ahead of monetisation.

Once the consolidation is completed, GAIL Gas will be monetised through a mix of primary and secondary stake sales, with the proceeds counting toward the government’s asset monetisation target.

The move forms part of the ₹16.72 lakh crore NMP 2.0 programme spanning FY26 to FY30, which envisages calibrated equity dilution and partial disinvestment across several public sector undertakings to unlock value and recycle capital into new infrastructure.

Also read: National Monetisation Pipeline 2.0: How India aims to monetise ₹16.72 lakh crore via GAIL, Coal India, AAI

Beyond GAIL Gas, NMP 2.0 includes leasing around 11,000 km of dark optical fibre laid along pipeline corridors by petroleum PSUs to telecom service providers to unlock additional revenue.

Indian Oil’s Panipat refinery expansion — from 15 MMTPA to 25 MMTPA — will be executed under the BOOT model, with capital invested in new tankages and storage facilities counted as monetisation value.

The government is also progressing the third round of Discovered Small Fields (DSF) auctions, offering 75 discoveries.

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.

Meanwhile, Coal India Limited is set to dilute stakes in its subsidiaries, with a target of mobilising ₹48,350 crore through partial equity sales.

In the power sector, step-down subsidiaries of central public sector enterprises are slated for equity dilution, with the government aiming to raise ₹31,000 crore through IPOs and FPOs by 2030.

The Airports Authority of India plans to divest stakes in one subsidiary and four joint ventures, which could generate ₹12,550 crore via IPOs, FPOs or private placements.

Additionally, the government has proposed redeveloping The Ashok Hotel starting FY27 and Hotel Samrat in FY30, with a combined monetisation potential of about ₹1,200 crore.Continue ReadingFirst Published: Feb 24, 2026 10:28 AM ISTTagsGAILGail India share priceGAIL sharesIPO