What was filed
GAIL (India) Limited told the exchanges that its Board approved a scheme to merge Konkan LNG Limited (KLL) into GAIL. Per the filing, KLL is a wholly owned subsidiary that owns and operates the LNG regasification terminal at Dabhol, Ratnagiri, Maharashtra. GAIL itself markets and transports natural gas, petrochemicals and liquid hydrocarbons.
How the merger is structured
Because KLL is already wholly owned, the merger uses the fast-track route under Section 233 of the Companies Act. On the scheme taking effect, the filing states, KLL will be dissolved without being wound up and all its equity shares cancelled. GAIL described the transaction as a related party transaction, KLL being its wholly owned subsidiary, and said there is no change in its shareholding pattern — consistent with an intra-group absorption rather than an acquisition involving new shares or cash.
Stated rationale
GAIL said the merger is intended to create a larger and stronger vertically integrated entity and to simplify and rationalise the group structure, which it said will enhance operational efficiencies. The Board approved the scheme at its meeting held on 31 July 2026.