Gujarat State Petronet - Right At The Dawn, Tariff Revision To Enlighten: Motilal Oswal
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Motilal Oswal Report
Over the last year and a half, as Guajrat State Petronet Ltd.’s volumes reached 38-39 million metric standard cubic meter per day in H1 FY20, there have been continuous investor concerns over the more than optimal utilisation rate of its high pressure pipeline grid.
With an adjustment in lieu of the new tax regime (of 25.17%), the tariff revision became a much larger concern, resulting in a huge de-rating in Gujarat State Petronet’s standalone value.
Petroleum and Natural Gas Regulatory Board has taken up tariff review of the company’s high pressure pipeline grid to determine the new tariff from FY22 onwards.
This would also adjust it for the new tax regime (16% pre-tax internal rate of return versus 18.45% in FY19).
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