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Hearty Welcome

To

Corporate Presentation of

GAIL [India] Ltd

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PRESENTATION OUTLINE

§ GAIL­ AN INTEGRATED GAS COMPANY

§ FINANCIAL PERFORMANCE

§ AWARDS & ACCOLADES IN 2006­07

§ GAIL’S BUSINESS INITIATIVES

§ AREAS COOPERATION

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GAIL­ AN INTEGRATED GAS COMPANY

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GAIL’S MISSION & VISION

Formed in 1984 as Gas Authority of India Limited

with

Changed name in 2002 As GAIL (India) Ltd

With redefined

Mission

Vision

“TO ACCELERATE AND OPTIMIZE THE EFFECTIVE AND ECONOMIC USE OF NATURAL GAS AND ITS FRACTIONS

TO THE BENEFIT OF NATIONAL ECONOMY.”

“BE THE LEADING COMPANY IN NATURAL GAS & BEYOND, WITH GLOBAL FOCUS, COMMITTED TO CUSTOMER CARE,

VALUE CREATION FOR ALL STAKEHOLDERS AND ENVIRONMENTAL RESPONSIBILITY”

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Telecom Telecom

GAIL’S Business Segments ­ Gas Transmission ­ Gas Trading ­ Liquid Hydrocarbons ­ Petrochemicals ­ LPG Transmission ­ GAILTEL ­ E&P ­ Power

City Gas City Gas

GAIL – AN INTEGRATED GAS COMPANY

Power Power

E & P E & P

∙ Secure future supply

∙ Selective ventures

∙ Strong partners ∙ Focus on gas ∙ Limited capital commitment

∙ Diversify and expand supply sources

∙ LNG terminal infrastructure, Possible international pipeline projects

∙ Remains core business

∙ Powerful national position ­ Expanded HVJ, DVPL

­ LPG pipeline ­ Regional pipelines

∙ High margin business

∙ Likely forays into retail and bulk marketing

∙ Petrochemicals ­ Competitive feedstock ­ Synergistic with HVJ

∙ City gas distribution and CNG for automobile sector through JVs

∙ Telecom – role of Carrier’s Carrier

∙ Power

Gas/LNG Import

Gas/LNG Import

Marketing & Transmission Marketing & Transmission Gas processing Gas processing Petrochemical Petrochemical

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GAS PIPELINES 6,800 KMS (155 MMSCMD) 11 States

LPG PIPELINES 1922 KMS (3.8 MMTPA)

GAS PROCESSING 7 Plants (1.2 MMTPA LPG)

PETROCHEMICALS 310,000 TPA (Polyethylene)

GAIL - BUSINESS PORTFOLIO

GAND

HAR

VAGHODIA

USAR

VIJAIPUR

PATA LAKWA

NATURAL GAS PIPELINE

LPG PIPELINE

LPG PLANT

PETROCHEM PLANT

TRIPURA

KG BASIN VSPL

CAUVERY BASIN

HVJ, D

VPL

JLPL

RAJASTHAN

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OFC E&P Blocks Myanmar Block DAHEJ LNG

OFC CONNECTIVITY 14,000 KMS

E&P 29 blocks (4 Overseas) & 3 CBM blocks

R­LNG PLL­ Dahej, RGPPL­ Dabhol (10 MMTPA)

Gas Retailing (8 JV) IGL,MGL,BGL,CUGL,GGL, MNGL, TNGCL, AGCL

Power 156 MW GSEG, Hazira 2150 MW RGPPL, Dhabol

GAIL - BUSINESS PORTFOLIO

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GAIL: GLOBAL FOOTPRINTS

EGYPTEQUITY IN 3 GAS RETAILING COMPANIES

MYANMAR PARTNER IN A1 AND A3 E&P BLOCKS

CHINA EQUITY IN CHINA GAS FOR GAS RETAILING

OMAN PARTNER IN E&P BLOCK

SINGAPORE 100% GAIL SUBSIDIARY, GAIL Global Singapore (Pty) Ltd

OVERSEAS PRESENCE

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FINANCIAL PERFORMANCE

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2068 2271 2405

2758

3213

3914

364 41

5

434

513 58

2

264

0

1000

2000

3000

4000

2001­02 2002­03 2003­04 2004­05 2005­06 2006­07 0

100

200

300

400

500

600

700

Revenues PAT

`

In Million US$

Reven

ue

Profit Afte

r Tax

FINANCIAL PERFORMANCE

TRACK RECORD OF STEADY GROWTH

Consistent growth in Top & Bottom line

5 years CAGR for Revenue =14 %

5 years CAGR for PAT = 14%

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AWARDS & ACCOLADES IN 2006­07

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AWARDS & ACCOLADES IN 2006-07

• “Quality Excellence Award 2007” awarded by the Quality Council of India.

• Dun & Bradstreet – “American Express Corporate Award 2006”

• “International Project Management Association (IPMA)”­ DVPL Project has been adjudged as Winner of “SILVER MEDAL” in Mega Projects category in 2006.

• British Safety Council, U.K. conferred “International Safety Award” to GAIL Pata (7th year consecutively), Vizag Secunderabad LPG Pipeline and KG basin (AP region) Natural Gas Pipelines.

• HVJ pipeline of GAIL adjudged as best performer in Group V (Cross Country Pipelines) by Oil Industries Safety Directorate (OISD) for 10th consecutive year.

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GAIL’S BUSINESS INITIATIVES

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LNG Sourcing

Domestic gas from new discoveries in NELP/CBM blocks.

Trans ­ National Gas Pipelines

­ Iran ­ Pakistan ­ India (IPI)

­ Turkmenistan ­ Afghanistan ­ Pakistan ­ India (TAPI)

BUSINESS INITIATIVES

GAS SOURCING

GAIL IS PLANNING TO MARKET 130 MMSCMD GAS FROM CURRENT LEVEL OF 70 MMSCMD AND TRANSPORT 200 MMSCMD GAS FROM CURRENT LEVEL

OF 81 MMSCMD IN NEXT 5 YEARS

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Increase in Number of Blocks to 29 (12 Deep Water, 9 On land, 8 Offshore Including 3 Farm in)

Acquired 3 CBM blocks in CBM III bidding round.

GAIL is a joint operator (with GSPC) in On land block in Rajasthan.

Test production is under progress from On land block in Cambay. Development Plan and GSA for Blocks A­1

and A­3 block, Myanmar are under finalisation.

Out of 9 blocks in which drilling has commenced,

discoveries have been made in 3 blocks.

EXPLORATION AND PRODUCTION

BUSINESS INITIATIVES

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INFRASTRUCTURE

BUSINESS INITIATIVES

Pipeline : GAIL will be adding another 5000km of pipeline within the country over an investment of USD 500 million in next 2­3 years which will add about 80 MMSCMD capacity.

LNG Terminal : GAIL promoted company Petronet LNG is upgrading its Dahej terminal capacity from 5MMTPA to 10 MMTPA and building a new terminal at Kochi in southern part of the country with capacity of 2.5 MMTPA.

GAIL promoted company RGPPL will be completing its 5MMTPA capacity terminal in western cost.

Retail Gas: Growth from 8 existing (IGL, MGL,BGL,TNGCL, CUGL, GGL, MNGL, AGCL) to 28 in short term and 230 in medium / long term

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LNG

Existing

Transmission Pipelines Existing

Upcoming

GAIL’s Planned Pipeline RIL’s East West Pipeline RIL’s Planned Pipeline GSPC’s Planned Pipeline

City Gas/ CNG Existing Planned

LNG Terminal

INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET

JAGDISHPUR

PHOOLPUR

BHATINDA

BAREILLY

DISPUR

DELHI

AGARTALA

BARODA

LUCKNOW

PATNA

AHMEDABAD

RAJKOT

KOTA

MATHANIA

GWALIOR

UJJAIN

AGRA

KOLKATA

GAYA

BOKARO VARANASI JHANSI

DAHEJ I & II 10 mmtpa*

HAZIRA 2.5 mmtpa

COIMBTORE

MANGLORE

MUMBAI BHUBANESHWAR

KRISHNAPATNAM

NELLORE

CHENNAI

TUTICORIN

TIRUCHCHIRAPALLI

HASAN BANGLORE

KOLHAPUR

SOLAPUR KAKINADA

VIJAYAWADA

DAMRA

DABHOL 5 mmtpa

KANJIKKOD

AURAIYA

Iran­Pak­India Pipeline

Turk­Afg­Pak­India Pipeline

GOA

CUTTACK

VIJAYPUR

KANPUR

NANGAL

GURGAUN

PUNE

BHARUCH

SURAT

HYDERABAD

RAJAMUNDRY

BHOPAL

KOCHI 5 mmtpa

ENNORE 2.5 mmtpa

BARMER

MANGALORE 2.5 mmtpa

GAS SECTOR INFRASTRUCTURE: CURRENT AND FUTURE–

COMPOSITE PICTURE

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Pata Expansion ­ 440 KTPA

Assam Cracker ­ 220 KTPA (PE) ­ 60 KTPA (PP)

PETROCHEMICAL

GAS BASED POWER PLANTS

Participation in Dabhol Project (other interests ­ GSEG, GIPCL)

Agreement with NTPC for Kayamkulam ­ Fuel Supply for 2300 MW Plant

BUSINESS INITIATIVES

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GAIL TRAINING INSTITUTE

State of the art training institute at Noida near Delhi.

Training and Development: Natural Gas, LPG & Petrochemicals, City Gas / CNG

A World Class facility for training and development

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Thank you

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Areas of Cooperation

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Kazakhstan • Population – 15.2 million

• Area ­ 2724900 square kms

• GDP (2007) ­ $ 145.5 billion

• Currency ­ Tenge (1$ = 128.35 KZT)

• Continuously experiencing an expansive growth (GDP growth rate

has been more than 9%)

• Inflation rate: 7.5% (2005)

Reserves • Proven Gas Reserves – 120 tcf • Oil with gas condensate – 35 billion barrels (4.8 billion tons)

Production (tcf / y) • 2000 0.31 • 2005 0.84 • 2010 1.24

Natural Gas Reserves

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MAIN AREAS OF COOPERATION

• Possibility of working for a large gas based petrochemicals and gas processing projects in Akthau and Atyrau;

• Possibility of Joint participation in E&P activities in Kazakhstan;

• Possibilities of stake in cross country and long distance pipelines in Kazakhstan.

• Possibility of exchange of experts and training.