We bring to our esteemed readers from time to time certain realities which are hidden from the public eye to maintain the shining and sterling image of certain government undertakings. We have noticed also that whenever an attempt is made to bring out the true picture, concerned authorities suddenly wake up to frenzied action to deflect and deviate. Out come the press releases, singing paeans of the company. The One such company which revels at this is GAIL. We have been contacting the highest offices of the Company as well the Corporate Communications Dept., asking for certain information pertaining to the functioning of the company but to no avail. The company does not want the general public, on whose funding the company runs, to have access to the somewhat shadier details.
Readers with interest in Oil & Gas are aware that the quarterly profits (last Q 3) of GAIL had slumped by 92%. It was merely ₹246 Crore due on high gas prices and loss of Russian supplies. The result was a steep drop of share prices by 4%. This piece of news was countered by a series of uplifting articles/ press releases eulogizing the efforts of GAIL in new investments and painting a very rosy future. There is no soul searching for the real causes of failure to meet projected targets. Also there is rarely any follow up information sharing with the common man on various projects announced in the past. Often, failures are blamed on external conditions beyond the control of the company. But is it the real cause? While the company has very strong fundaments what is basically keeping it from realizing its full potential is its management style. Gas is a fast paced, constantly changing business. The company seems to lack the agility to come up tops. It has a conservative approach and leaders lack a risk taking ability essential for a vibrant gas business. To keep constantly ahead of the owners and suppliers strategy one requires sharp market acumen to derive maximum benefits. The lack of alacrity seems to have bogged down this company which is close to three decades in operation. It has also conveniently gone in for retailing of CNG & LNG to derive margins and show profits. The truth is that it was deigned to be a Pipeline Constructer and Operator for Natural Gas which was fast emerging as a fuel of the future. The track record of this particular activity of GAIL is mixed. To bolster the books it is constantly venturing into distribution and marketing which is certainly not the core strengths of the company. It has zealously guarded its territory and fought off competition from other Oil & Gas majors who have much superior infrastructure and wherewithal for marketing. It has competed against other sister government Oil & Gas companies despite the fact that its chewing more than it can swallow. This sectarian approach has cost the government and the consumer dear. The lack of supplies to power and fertilizer plants, long queues before CNG stations in the few metros where it has ventured to supply, lack of any plans to extend CNG to other cities and towns is a telling example. While the automobile sector has excelled in coming up with models with alternative fuels and renewables GAIL as a supplier of fuel had lagged behind miserably. The point is that GAIL lacks the ability to ameliorate the situation still does not allow competition to take things forward. The taxpayers, consumers and the government has to pay a heavy price for the dog in the manger attitude.
GAIL executives are also know to be quite reticent while discussing the challenges it faces as also system improvements which are long overdue. To cite an example, NewsIp had enquired about CAG reports of last two years 2020-21 & 2021- 22 verbally, from the concerned department tasked to interact with the media. Surprisingly, it was told that GAIL did have a single audit point in last 15 years. When confronted with the actual documents there was a quick re take of sorts. It goes to show how much importance is accorded to facts and figures. Without going into details of the reports; we wish to inform our readers that it dealt with excess payments and expenditures made to GAIL executives over and above what was prescribed in the last Pay Commission recommendations and choosing within the ‘Cafeteria approach.’ Since the matter is still within the consideration of the concerned ministry we would refrain from further comments. But this shows the cavalier attitude of the management even when it come to well defined guidelines of the government dealing with employee benefits. If such shortcuts are resorted to in simple matters, one can imagine to which levels the company leadership can go to ‘manage’ business. Our purpose is not to demoralize or cast aspersions but one must remember that Government Companies have a big responsibility upon them on how to spend the exchequers money. We would be failing in our duty if transgressions are not brought to the notice of our esteemed readers and common public.
