News Hour- GAIL, Oil India show interest in buying Mukesh Ambani's pipeline business RGTIL

Mukesh Ambani's closely held company, Reliance Gas Transport Infrastructure Ltd (RGTIL) is up for sale and PSU companies GAIL and Oil India have shown interest in buying the company, sources with direct knowledge said. 

Mukesh Ambani may seek a valuation close to Rs 10,000 crores for the pipeline business. JPMorgan, Citi and SBI Caps have been appointed for the sale of RGTIL. 

Mukesh Ambani wants to sell the gas pipeline business as the low gas output from the KG Basin is unable to justify large investments in these pipelines.RGTIL operates the Rs 15,000 crore East-West gas pipeline (EWPL) that connects Kakinada to industrial hubs of Karnataka, Maharashtra and Gujarat. 

RGTIL was granted the license to build two pipelines connecting Kakinada-Vizianagaram-Srikakulam and Kakinada-Ennore-Nellore-Chennai in 2007, but the company has not gone ahead with the projects due to unavailability of gas. 

GAIL and Oil India sources have confirmed their interest in buying RGTIL but are not sure about the valuation expectation of the promoters. RGTIL spokesperson said, "We will not comment on market speculation." 
(Source- http://economictimes.indiatimes.com)