GAIL (India) Ltd
Memorandum of Understanding
between
Ministry of Petroleum & Natural Gas
and
GAIL (India) Ltd.
Year 2017-18
PART – A: Criteria For Performance Evaluation – MoU: 2017-18
MoU Target for the 2017-18
SL
Financial Performance Criteria
Unit
Marks
Rs. Cr.
Ex
100%
VG
80%
Good
60%
Fair
40%
Poor
20%
10
52,389
51,023
49,772
48,451
47,813
1
Turnover - Revenue from
Operations
2
Operating profit as a percentage
of Revenue from operation (Net)
%
20
9.0%
8.5%
8.0%
7.7
7.5%
3
Return on Investment - PAT /
Average Net Worth
%
20
9.0%
8.5%
8.3%
8.1%
8.0%
4
Capacity Utilization (10%)
4.a Gas Marketing
MMSCMD
5
80
79
78
77
76
4.b Gas Transmission
MMSCMD
5
100
98
96
94
92
Rs. Cr.
10
3311
3190
3080
2970
2860
%
5
100
90
80
70
60
5
CAPEX (Rs. Cr.)
6
Percentages of value of CAPEX
contracts/ projects running/
completed during the year
without time/ cost overrun to total
value of CAPEX contracts
running/ completed during the
year (%)
PART – A: Criteria For Performance Evaluation – MoU: 2017-18
MoU Target for the 2017-18
SL
Financial Performance Criteria
Unit
Marks
7
Trade Receivables (Net) as
number of days of Revenue from
Operations (Gross)
Days
8
Reduction in claims against the
Company not acknowledged as
debt raised - CPSE and Others
%
9
Parameters relating to Joint Ventures (10%)
No. of PNG connections during
9.1 the year by the JVs/ Subsidiaries/
Associates
Lacs
9.2 New CNG stations
Nos.
Ex
100%
VG
80%
Good
60%
Fair
40%
Poor
20%
5
27
29
32
35
38
5
10
9
8
7
6
6
10
9
8
7
6
120
110
100
90
80
1200
1000
800
600
400
100
95
90
85
80
4
9.3
Implementation of Green
Corridor
10
HRM related Parameters (5%)
Online Submission of ACR /
APAR in respect of all executives
(E0 & above) along with
10.1
compliance of prescribed
timelines w.r.t writing of ACR /
APAR
Kms
% of no of
executives
1
PART – A: Criteria For Performance Evaluation – MoU: 2017-18
MoU Target for the 2017-18
SL
Financial Performance Criteria
Online Quarterly Vigilance
10.2 Clearance updation for Senior
Executives (AGM & above)
Preparation of Succession Plans
10.3 and its approval by Board of
Directors
Unit
Marks
% of no of
Senior
Executives
Ex
100%
VG
80%
Good
60%
Fair
40%
Poor
20%
1
100
95
90
85
80
Date
1
30.09.2017
10.10.2017
20.10.2017
31.10.2017
10.11.2017
10.4
Holding of DPC without delay for
Executives (E0 & above level)
%
1
100
95
90
85
80
10.5
Board decision on
recommendation of HR taskforce
constituted by MoP&NG
Date
1
31.10.2017
30.11.2017
31.12.2017
31.01.2018
28.02.2018
Total
100
Notes:
1. Breakup of Revenue estimated for the 2017-18 and revenue adjustment formula are annexed as Annexure A
2. CAPEX target of Rs. 3311 crore is excluding investment in JVs for Rs. 540 crore. It was also agreed that if the investment in
JVs is lower than Rs. 540 crore, the difference shall be added to the above targets.
3. The details of CAPEX Projects for Monitoring are annexed at Annexure B.
4. Targets recommended by the IMC are based on estimates submitted by the CPSE for the year 2016-17. In case of better
performance of CPSE as per final results as compared to estimates, the difference shall be added to the targets for the year
2017-18
5. Targets decided in the MoU are unconditional and no offset will be allowed except referred to in para 5.A.i(c) of Minutes of
IMC Meeting relating to Revenue from Operations. Further evaluation would be subject to compliance of additional eligibility
criteria as contained in 14.2 of MoU guidelines 2017-18.
B.C. Tripathi
Chairman & Managing Director
GAIL (India) Limited
K. D. Tripathi
Secretary
Ministry of Petroleum & Natural Gas
New Delhi, 3rd July 2017
PART B
TREND ANALYSIS
Financial year
S. N.
Financial performance Criteria
Unit
2011-12
Revenue from operation - Gross
1
a. Profit before tax
b. Other income
c. Extraordinary and Exceptional items
Rs. Crore
d. Prior period items
e. Operating profit/Loss (a-b+/-c+/-d)
3
2013-14
2014-15
2015-16
40,982
48,195
58,275
57,465
52,389
40,441
47,523
57,508
56,742
51,914
5,340
6,058
6,402
4,284
3,173
648
765
899
861
858
0
0
345
63
0
3.07
256.7
-6.55
107.37
-0.15
4,695
5,550
5,151
3,468
2,315
11.61%
11.68%
8.96%
6.11%
4.46%
3,654
4,022
4,375
3,039
2,299
26,407
29,887
32,857
34,627
34,812
25433
28147
31372
33742
34719
14.37%
14.29%
13.95%
9.01%
6.62%
1,268
1,268
1,268
1,268
1,268
57.34%
57.34%
56.11%
56.11%
56.11%
Rs. Crore
Revenue from operation – Net of Excise duty
2
2012-13
Operating profit/surplus as percentage of revenue from
operations (net)
%
a. PAT
b. Net worth at year end
Rs. Crore
c. Average Net worth
4
d. PAT/Net Worth
e. Paid-up share capital
f.
GoI Share
%
Rs. Crore
%
Financial year
S. N.
Financial performance Criteria
Unit
2011-12
2013-14
2014-15
2015-16
25,314
28,808
31,803
33,590
33,814
35,749
42,229
52,349
53381
49599
41089
48287
58406
57603
52772
87%
87%
90%
93%
94%
154
194
291
325
310
252
383
336
325
320
c. Other Income
242
188
271
211
228
d. Total
648
765
899
861
858
g. Reserves and surplus
5
2012-13
Rs. Crore
Total Expenses
Rs. Crore
6
Total Income
7
Total expenses/ Total Income
%
Detail of other income
a. Interest
8
b. Dividend
Rs. Crore
a. Cash and bank balance and equivalent
Rs. Crore
66
1,697
1,522
229
760
b. Investment in mutual funds
Rs. Crore
0
0
0
0
0
c. Investment in shares other than subsidiary/ JVs
Rs. Crore
5,679
6,533
6,788
6,528
4,652
d. Total (a + b + c)
Rs. Crore
5,745
8,230
8,310
6,757
5,412
e. Cash credit/ Over-draft loan/ Short term loan
Rs. Crore
0
224
0
234
0
f.
Rs. Crore
32
10
22
4
34
Rs. Crore
1104
1218
1319
761
698
9
10
Balance in current account
Dividend paid/declared for the year. Excluding Dividend tax
Financial year
S. N.
Financial performance Criteria
Unit
2011-12
2012-13
2013-14
2014-15
2015-16
Installed Capacity in respect of each product
MMSCMD
176
206
206
206
206
MMTPA
3.8
3.8
3.8
3.8
3.8
c. LHC Production
MMT
1.4
1.4
1.3
1.3
1.3
d. Polymer Production
TMT
410
410
410
810
810
a. Gas Transmission throughput
11
b. LPG Transmission
Capacity utilization in respect of each product
a. Gas Marketing
MMSCMD
84.17
81.44
79.18
72.07
73.67
b. Gas Transmission throughput
MMSCMD
117.62
104.9
96.22
92.1
92.09
12
c. LPG Transmission
TMT
3362
3136
3145
3093
2819
d. LHC Production
TMT
1441
1376
1307
1276
1086
e. Petrochemical Production
TMT
441
437
436
447
344
Contribution of each product in sales
13
a. Gas Trading
%
73.66%
75.20%
74.46%
75.46%
78.15%
b. Gas transmission
%
8.85%
6.48%
6.69%
5.39%
7.17%
c. LPG transmission
%
1.13%
0.62%
0.73%
0.78%
0.94%
d. Petrochemicals
%
8.39%
7.91%
7.93%
8.12%
5.89%
Financial year
S. N.
Financial performance Criteria
Unit
2011-12
e. LHC Sales
2012-13
2013-14
2014-15
2015-16
%
7.67%
9.37%
9.54%
8.93%
6.29%
14
CAPEX
Rs. Cr.
7,136
6,301
4,364
1,924
1,881
15
Trade receivables (net)
Rs. Cr.
2,177
3,217
3,530
5,504
3,843
16
Trade receivables (net) as percentage of RO (gross)
%
5.31%
6.67%
6.06%
9.58%
7.34%
2,157
4,090
5,273
5,819
6,201
538
1,038
1,313
1,191
1,158
13
31
50
29
45
3,333
810
961
1,163
1,267
6,041
5,969
7,597
8,202
8,671
115%
124%
107%
122%
126%
Claims against the company not acknowledge raised by
a. Central government depts.
b. State governments/Local authorities
17
c. CPSEs
Rs. Cr
d. Others
Total
18
Return (share of profit/loss) on investment in Joint Ventures
%
19
No. of PNG connections during the year by the
JVs/Subsidiaries
Lacs
-
-
1.52
2.15
1.72
20
No. of CNG stations
Nos.
-
-
-
25
36
Annexure A
Calculation of Revenue from Operation at various levels and Revenue Adjustment Formula
Adjusted Revenue from Operations = FR + ER*(QD*PD*1.4194+QLTR*PLTR*1.4366)
S No.
Excellent
Particulars
1 Revised Revenue from Operations (RO)
2 FR = Fixed Revenue in Rs Cr
3 ER = Exchange Rate in Rs/US $
4
Gas Source: Domestic
Domestic Gas at APM Price
Domestic Gas at Non APM Price
Deap Sea Gas
5 Subtotal/ Wt Avg. - Domestic
Volume
(QD)
41.61
3.68
1.03
46.32
Price
(PD)
2.74
5.18
5.23
2.99
6 CFD = Conversion Factor for Domestic Gas
7 Gas Source: Imported
RLNG LT -Ras Gas Inside Gujarat
RLNG LT -Ras Gas outside Gujarat
RLNG LT -Ras Gas New Contract
RLNG LT -Gorgon
RLNG LT -DCP
8 Subtotal/ Wt Avg. - LT RLNG
9 CFLTR = Conversion Factor for Long Term RLNG
Details of Fixed Revenue
10 Particulars
Spot RLNG
Gas transmission
LHC
Petchem
LPG Transmission
E&P
Other
Other Operating Income
11 Total Fixed Revenue (FR)
12 Revised Revenue from Operations (RO) (S No. 5+8+11)
VG
Price
(PLTR)
9.15
10.50
8.62
10.46
10.80
10.26
Poor
49,772
48,451
47,813
21,878
68
20,545
68
19,876
68
19,179
68
18,364
68
Rs.CR.
10,992
1,839
519
13,350
Volume
(QD)
41.57
3.71
1.03
46.31
Price
(PD)
2.74
5.18
5.23
2.99
Rs.CR.
2,589
11,213
267
1,597
1,495
17,161
Rs.CR.
10,981
1,855
518
13,355
Volume
(QD)
41.39
3.48
1.03
45.90
Price
(PD)
2.74
5.18
5.23
2.98
1.4194
Volume
(QLTR)
2.95
11.02
0.30
1.49
1.35
17.10
Price
(PLTR)
9.15
10.50
8.62
10.46
10.80
10.25
Rs.CR.
2,633
11,296
257
1,518
1,419
17,124
Rs.CR.
10,934
1,738
519
13,192
Volume
(QD)
41.29
3.38
0.99
45.66
Price
(PD)
2.74
5.18
5.23
2.97
1.4194
Volume
(QLTR)
2.95
10.61
0.30
1.49
1.35
16.69
Price
(PLTR)
9.15
10.50
8.62
10.46
10.80
10.25
Rs.CR.
2,633
10,881
253
1,518
1,420
16,704
Rs.CR.
10,906
1,690
500
13,096
Volume
(QD)
41.30
3.32
0.95
45.57
Price
(PD)
2.74
5.18
5.23
2.97
1.4194
Volume
(QLTR)
5.88
7.54
0.30
1.49
1.35
16.55
Price
(PLTR)
9.15
10.50
8.62
10.46
10.80
10.01
Rs.CR.
5,253
7,733
254
1,518
1,419
16,176
Rs.CR.
10,910
1,661
480
13,051
1.4194
Volume
(QLTR)
3.90
9.47
0.30
1.49
1.35
16.51
Price
(PLTR)
9.15
10.50
8.62
10.46
10.80
10.17
Rs.CR.
3,491
9,715
254
1,518
1,421
16,398
1.4366
1.4366
1.4366
1.4366
1.4366
Excellent
7,207
4,433
2,295
6,693
523
555
73
100
21,878
VG
6,501
4,219
2,167
6,430
501
555
73
100
20,545
Good
6,370
4,095
2,044
6,161
480
555
73
100
19,876
Fair
6,282
3,885
1,922
5,903
458
555
73
100
19,179
Poor
5,887
3,967
1,800
5,552
430
555
73
100
18,364
52,389
51,024
49,772
48,451
47,813
Note : PD and PLTR components of the formula includes Basic Price, Customs duty (if any), Regasification (if any), Gujarat VAT (if any), Marketing Margin and North East
Discounts (if any).
Adjustments in the Revenue from Operations will be given based on variations on Exchange rate (ER), Domestci gas price (PD) and LTRLNG price (PLTR). However,
no variation would be allowed for quantity variation and quantities will remain fixed.
PD: Average price of Domestic Gas in US$/MMBTU
PLTR: Average price of imported RLNG in US$/MMBTU
Fair
51,023
1.4194
Volume
(QLTR)
2.90
10.93
0.32
1.56
1.42
17.13
Good
52,389
QD: Quantity of Domestic Gas in MMBTU
QLTR: Quantity of imported RLNG in MMBTU
Annexure B
Details of CAPEX Projects for Monitoring
Sl.
No
Name of Project
Approved
Cost /
Estimated
cost
Exp.
Planned
During
2017-18
Cum.
Physical
Progress
(%)
Details of Milestone in (2017-18)
Date of Milestones
Laying of P/L up to Varanasi (100 Kms), Mechanical
1
Jagdishpur-HaldiaBokaro-Dhamra Pipeline
Completion of Bihar Spurlines, Completion of Delivery of
3397
1200
78
Section-1
line pipes, Delivery of Mainline Ball valves , Construction
31st Mar’18
Progress - 50 %
Award of Line pipe, Award of Laying Contract, Delivery of
Dhamra - Angul Pipeline
2
3
4
5
2253
300
22
30% of line pipe, Ordering of Mainline Ball Valves,
Section –2A
Construction Progress - 10 %
Dobhi- Durgapur
Pipeline
Award of Line pipe, Award of Laying Contract, Delivery of
2250
300
22
30% of line pipe, Ordering of Mainline Ball Valves,
Section – 2B
Construction Progress - 10 %
Bokaro - Angul –
Pipeline
Identification of Permanent land for stations, Award of Line
3212
95
10
pipe, Tendering of Laying works, Tendering of Mainline
Section – 3A
Ball Valves
Durgapur – Haldia
Pipeline
Identification of Permanent land for stations, Tendering of
Section – 3B
1828
5
8
Line pipe, Tendering of Laying works , Tendering of
Mainline Ball Valves
31st Mar’18
31st Mar’18
31st Mar’18
31st Mar’18
Annexure B
Sl.
No
6
Name of Project
Kochi – KoottanadMangalore Ph-II
Approved
Cost /
Estimated
cost
Exp.
Planned
During
2017-18
Cum.
Physical
Progress
(%)
Details of Milestone in (2017-18)
Award of Laying works of all sections, Award of HDD
2915
106
75
Date of Milestones
28th Feb’ 18
Works
Tendering of pipeline terminal Works, Ordering of Pipeline
7
AuraiyaPhulpur
Pipeline project (APPL)
1428
225
78
terminal Works, Construction Progress 75%, Completion of
31st Mar’18
Delivery of line pipes, Delivery of Mainline Ball valves
Award of Line pipe, Award of Laying Contract, Ordering of
8
Vijaipur
–
Auraiya
Pipeline Project3
2881
300
18
Mainline Ball Valves, Start of delivery of Linepipe,
31st Mar’18
Construction Progress 10%.
Delivery of Line pipes, Ordering of Pipeline Laying &
9
Jamnagar- Loni LPG
Pipeline Augmentation
(JLPL)
Construct Works, Ordering of Composite station works of
328
50
80
LPG Pump, Delivery of Pumps ,
31st Mar’18
Completion of Pipeline Const.: 75%
10
Ankleshwar – Vadodara
Pipeline Project
Completion of RoU Opening ,
200
40
96
31st Mar’18
Mechanical Completion of Pipeline
Remarks:
1. The overall Lowering target for the above 10 projects and other small pipelines is 1250 Kms for diameter of 24” and above. For monitoring
lowering of pipeline working out without time/cost overrun, lowering target would also be considered.