Chairman & Managing Director

Dear Stakeholders, With the advent of the COVID-19 pandemic, the situation around the world continues to affect the economy with respect to global supply chains, wages, and productivity. The year tested the resilience of the organizations in managing the relationship between the employees and employers. Organizations whose foundations are built on strong values, trust, and a shared vision of serving the nation survived during this pandemic. In this regard; I would like to salute all the COVID warriors whose sacrifice for the safety and welfare of humanity is priceless and deserves lifelong gratitude on our end. I appreciate the commitment and hard work of GAIL employees also, who despite the challenges, maintained uninterrupted operations of its Petrochemical plant, LPG Plants, pipelines, and other facilities to ensure delivery of essential products such as polymers (for PPE kits manufacturing) PNG, CNG, LPG, and other hydrocarbons products to the customers.

I would like to present GAIL’s 11th Sustainability report ‘Energizing Growth’, which shows our efforts towards improving Environmental, Social, and Governance (ESG) performance. Our report is aligned with the Global Reporting standards of “Comprehensive” reporting. Additionally, it is also compliant with the updated IPIECA 2020, Sustainability Accounting Standards Board (SASB) requirements, and the Ministry of Corporate Affair’s National Guidelines on Responsible Business Conduct. This year, we have also published our first integrated report, on which I would like to congratulate all GAIL employees.

The threats of climate change are evident and it is imperative to reduce carbon emissions for a cleaner environment. At GAIL, we are committed to reduce our carbon footprint by foraying into the Renewable Energy Sector through organic and inorganic routes. We understand that tackling climate change requires a multifaceted approach; thus, our focus is not only limited to renewable energy but also extended to promote compressed biogas (CBG), thereby making the GoI SATAT initiative a success. CBG is aimed at replacing fossil fuel as well as reducing waste and related emissions, thus contributing to a Swachh Bharat. To reduce import bills to the exchequer, carbon footprint & emissions further, GAIL is working on Ethanol and Hydrogen. GAIL values continuous improvement which is reflected in our best-in-sector operational efficiency.

Our business has a direct positive impact on environmental and social parameters and our company’s role in energy security is unparalleled. Natural gas, the lifeline of the country, is a key raw material for fertilizer and the CGD sector. In the industrial sector, apart from giant enterprises, medium and small-scale enterprises are also shifting to natural gas to minimize their environmental and GHG impact. We are committed to fulfil the GoI’s vision of ‘One Nation One Grid’. GAIL is presently constructing the ‘Pradhan Mantri Urja Ganga’ pipeline project and ‘North East Gas Grid’ in Joint Venture mode to promote a gas-based economy.

At GAIL, we stand focused to maintain worldclass standards for ensuring operational safety, performance, and growth. We take various measures to ensure the health and well-being of our employees as well as for the community. We strive to enrich the lives of thousands of underprivileged people by creating social capital across our CSR focus areas of education, healthcare, skill development, women empowerment, environment protection, etc under the GAIL Hriday program.

Apart from providing medical consultations in the remotest places across the country, GAIL’s Arogya initiative has also contributed crucially to serve the community by distributing much-needed personal protective equipment and oximeters. We are also supporting vaccination drives through cold chain refrigerator trucks.

During the pandemic, to ensure the well-being of all employees, including superannuated employees and their family members, GAIL team interacted with and remained in constant contact with all the employees and seniors under the initiative ‘Sparsh’ aimed at ‘bridging the physical distance to let the employees feel GAIL’s Sparsh with our kind words and care’. As a special measure, GAIL has decided to take care of the education, housing, and medical requirements of the dependent family members of the deceased employees.

As a responsible organization, we are trying to contribute our best in taking GoI COVID-related initiatives to the public. Under the aegis of MoPNG, GAIL has set up and commissioned PSA oxygen plants in 12 government hospitals across 4 states namely, Uttar Pradesh, Madhya Pradesh, Karnataka, and Rajasthan. GAIL, on behalf of Oil and Gas PSUs, has placed an order for the supply of 25,000 Oxygen cylinders. Further, along with other Oil and Gas PSUs, GAIL is also contributing toward the procurement of 10,000 Oxygen concentrators. However, we should not be complacent and continue taking necessary precautions to beat the next surge.

Covid-19 pandemic has taught us the importance of local vendors and suppliers. Aligning with the PM’s vision of ‘Vocal for Local’, we are also committed to increase the presence of local vendors and suppliers in our supply chain. It will not only reduce environmental impact but also create a positive social impact through our operations in the long term.

GAIL has added another Landmark in its Sustainability Journey this year. GAIL Vaghodia and GAIL Vijaipur have been awarded GreenCO “Silver” Rating by CII which reflects how sustainability is deeply ingrained in our working.

I am happy to announce that GAIL has been included in the FTSE4Good Index Series (FTSE ESG Rating) as part of the London Stock Exchange Group Sustainability Index 5th year in a row for demonstrating strong environmental, social, and governance practices of international standards. GAIL has been featured in the Forbes list of World’s Best Employers 2020, and GAIL remains committed to do better for its people and society.

Shri M V Iyer

Director (Business Development)

At GAIL, we acknowledge that sustainable growth is only possible by thoughtfully integrating economic, environmental and social parameters into our growth strategy. Our Company’s overall performance is a culmination of all our efforts in this direction. GAIL constantly endeavors to meet the growing energy demand to empower our nation to be self-reliant.

We are pushing our limits to achieve energy security while addressing the growing concerns on climate change and carbon emissions to enable a gas-based economy. In an effort to achieve this, we have completed laying of ~ INR 2,400 crore Dhobi-Durgapur pipeline that will bring cheap piped natural gas to Eastern India.

GAIL is also setting up a Compressed Bio-Gas (CBG) plant at Ranchi which would process 150 tons per day municipal solid waste to produce Bio-Gas and bio manure. To support GoI’s ambitious Sustainable Alternative Towards Affordable Transportation (SATAT) scheme, GAIL along with its JVs has issued 200 letters of intent to prospective CBG entrepreneurs to guarantee offtake. GAIL, under guidance of MoPNG, is implementing CGD-CBG synchronization scheme to assist CBG producers. GAIL is also exploring to add 1GW renewable energy in its current portfolio both through organic and inorganic route. Under the aegis of MoPNG, plans are being made to set up a 1G Ethanol plant for Ethanol Blended Petrol Program. GAIL has also forayed in Green Hydrogen business segment. These alternate fuels would be a step towards Atmanirbhar Bharat.

These business initiatives would provide a more sustainable business by ensuring that we create no negative impacts on society and the environment. By making conscious business decisions in association with our valued and trusted partners, we are energizing growth and creating long-term value for all our stakeholders.

Shri Anjani Kumar Tiwari

Director (Finance)

FY 2021 has been a challenging period for all of us. The COVID-19 pandemic has affected the industry in multiple ways. Globally, the oil and gas sector witnessed supply shock and price drop for a while. The bleak demand outlook created by the nationwide lockdown due to the COVID-19 pandemic has influenced our company’s profitability.

However, the Company has taken all its effort to maintain operation and profitability. Despite the impact of pandemic, GAIL has achieved a gross turnover and profit after tax of Rs 56,738 crore and Rs 4,890 crore respectively. The downfall in the operation and financial capital was for temporary period and not held back on delivering our commitment towards building a gas-based economy.

The unexpected wake of the pandemic has enabled us to strengthen our operational efficiencies to meet the new normal requirements including cost optimization in our operations across our sites.

Our business has rebounded in a short span of time. With concerted efforts, we have witnessed new heights in petrochemical production, made natural gas and LPG transmission pipelines available as per customer demand; and ensured uninterrupted supply during the financial year. In this way, GAIL has made it possible to create value for its stakeholders during this transformational year.

During this period, Digital technologies have played an important role in maintaining business continuity and sustainable growth of the Company. We took many digital initiatives in GAIL and most of these initiatives were enabled before the pandemic hit us. The Digital yatra started by the Company, smoothen the business process and technicalities.

We have created an enabling environment to access risk and implement mitigation measures to improve the company’s financials in the coming years. The Company has not only taken care of its business but also taken various relief measures for its employees and society.

The Company has compliant to all the environmental and regulatory requirements. We have already commenced a transformative sustainable journey to maximize value for our people, offer improved customer service and develop superior products while creating a positive impact on the environment and society.

The Company has been marching on the path of moving from being a natural gas Company to an integrated energy Company with global presence. I am confident that we will be able to outperform the current margins and grow sustainably.

Shri E.S. Ranganathan

Director (Marketing)

The year 2020 has changed the world and people’s lives in ways we could never have imagined. It was a tough year for everyone, everywhere. At GAIL, resilience in the face of adversity is our inherent core value. Even during these testing times, while keeping safety as an utmost priority, we have been harnessing efficiency in our operations, enhancing productivity and leveraging digital technologies to bring in transformative measures in our businesses.

We as a Company have not stopped working towards our mission i.e. to enhance the quality of life through clean energy and beyond. Energy that is accessible and affordable is the substance of inclusive growth. GAIL has aligned itself strongly with the vision of Government of India to shift the nation towards gas-based economy by increasing percentage of Natural Gas to 15% in the energy mix from the current 6.3%.

GAIL currently manages 70% of India’s gas transmission network, and has been expanding the network across the India to presently ~ 13,718 km of natural gas pipelines. We are providing that last-mile connectivity to various industrial consumers which aids them to shift to more sustainable alternate fuels. In the last year, we have transported gas volumes of up to 104 MMSCMD. GAIL takes immense pride to have India’s largest and most diverse LNG portfolio with a volume of around 14 MMTPA. GAIL is further working towards transportation of LNG by truck to augment the reach of this clean fuel in the transport sector.

GAIL has presence directly and through its subsidiaries and joint ventures in City Gas Distribution in most of the major metropolitan cities and state capitals. We are currently authorized to operate in 61 geographical areas across India, connecting over 2.4 million vehicles with CNG and 5.08 million households with PNG connections. During this year, we have registered a record addition of 10.10 lakh household PNG connections, 341 CNG stations, which is the highest figure ever achieved.

We are fully aware that sustainable growth is only possible when we grow and prosper along with the community we serve. With our Hawa Badlo movement, an initiative spearheaded by GAIL, we are changing mind-sets and encouraging people to adopt to cleaner and more sustainable lifestyle habits.

Moving forward, we will continue using the transformative power of clean energy to improve the quality of life, build trust, so that we can energize growth wherever we go by building self- reliant India.