Approval of scheme of merger of Konkan LNG Limited (KLL) with GAIL (India) Limited
July 31, 2026: State-owned GAIL (India) Limited has approved the merger of its wholly owned subsidiary Konkan LNG Limited (KLL) with the parent company. The decision was approved by GAIL’s Board of Directors during its meeting held on July 31, 2026.
The merger has been undertaken under Section 233 of the Companies Act, 2013, which provides a simplified merger process for wholly owned subsidiaries.
Key Highlights of the Merger
Companies Involved
Transferee Company: GAIL (India) Limited
- FY 2025-26 Turnover: ₹1,41,483 crore
- Business: Natural gas transmission and marketing, petrochemicals, LPG, liquid hydrocarbons, and related energy infrastructure.
Transferor Company: Konkan LNG Limited (KLL)
- FY 2025-26 Turnover: ₹741 crore
- Business: Owns and operates the Dabhol LNG Regasification Terminal located in Ratnagiri, Maharashtra.
Why is GAIL Merging Konkan LNG?
According to the company, the merger aims to:
- Create a larger and stronger vertically integrated energy company.
- Simplify GAIL’s corporate structure.
- Improve operational efficiency by integrating LNG infrastructure directly into GAIL’s operations.
- Rationalize group entities and streamline decision-making.
The move is expected to strengthen GAIL’s LNG business while reducing administrative complexity.
No Impact on Shareholders
Since Konkan LNG is a 100% wholly owned subsidiary of GAIL, the merger will not result in any change in GAIL’s shareholding pattern.
Once the scheme becomes effective:
- All equity shares of Konkan LNG held by GAIL will be cancelled.
- Konkan LNG will be dissolved without undergoing the winding-up process.
- No new shares will be issued by GAIL as part of the transaction.
Related Party Transaction
The merger qualifies as a related-party transaction because Konkan LNG is a wholly owned subsidiary of GAIL. However, the transaction is being carried out through the statutory merger provisions applicable to wholly owned subsidiaries.
Board Approval
The proposal was approved during GAIL’s Board meeting held on July 31, 2026, which commenced at 12:00 PM and concluded at 1:55 PM.