Budget 2021: Gas sector

The government announced the addition of 100 cities to the city gas distribution network, which further boosted the stock of gas companies. The government informed that the pipelines of GAIL (India) Ltd, Indian Oil Corporation (IOC) and HPCL will be monetised. 

The government also announced setting up of independent gas transport system operator, which would be set up for facilitation and coordination of booking of common carrier capacity in all-natural gas pipelines on an open-access basis. 

With an independent gas transport system, all gas marketers will have equal access to the common carrier part of the gas pipelines and will be able to book capacity depending on its availability. 

The government also announced a new gas pipeline project for Jammu and Kashmir. Ujjwala scheme, which offers free cooking gas connections to poor women, will be extended to cover 1 crore more beneficiaries. Currently, Ujjwala scheme has 8 crore beneficiaries. 

BSE Oil & Gas index is trading 1.42 per cent higher from its previous close of 14,007.86. Post budget announcement, IGL jumped 3.08 per cent, GSPL surged 2.91 per cent, ONGC inched higher by 2.09 per cent while GAIL increased 0.40 per cent.