PRESS CONFERENCE ON FINANCIAL RESULTS FY 2007-08 NG/LPG Transmission NG Trading LPG & OLHC Petrochemicals E&P City Gas Power GAIL Tel

GAIL ¦ Management The Management Team that will deliver the Strategy Dr. U D Choubey Chairman & Management Director Sh M R Hingnikar Director (HR) Sh R K Goel Director (Fin) Sh Santosh Kumar Director (Projects) Sh A K Purwaha Director (BD) Sh B C Tripathi Director (Mktg) Functional Directors Sh Sundareshan Sh D N Narsimha Raju Dr. A K Kundra Dr. U K Sen Sh Amit Mitra Independent / Government Nominee Directors

GAIL ¦ Overview Integrated Natural Gas Company India’s Numero Uno Gas Company Integrated Natural Gas Company 24 Years of History, Rich Experience & Expertise Consistent Dividend Payer Moody’s Intl. Rating – Baa2 (Foreign) & A3 (Local) Government of India – Majority Stakeholder (57%) Listed in BSE, NSE & London Stock Exchange International Presence – China, Egypt, Oman, Singapore & Myanmar 10 Years Turnover CAGR – 13% 10 Years PAT CAGR – 10% Employees – 3548

GAIL ¦ Overview – Now & Then Emerged as a Truly Integrated Company 1998 WAS 2008 IS Branded as Gas Authority of India Ltd GAIL (India) Ltd NG Trans 55 MMSCMD 82 MMSCMD NG Trading 69 MMSCMD LHC Prod 659 TMT 1347 TMT Polymer Prod - 386 TMT GAIL Tel 13000 KM OFC E&P Blocks 27(3-Overseas) & 3 CBM JVs/Associates 12 (Domestic) 100% Subsidiary GAIL Global Singapore Global Ventures 4 (1 - China & 3 – Egypt) Lines of Business Ventures

GAIL ¦ Overview – Now & Then Strong Financial Performance Delivered (Rs in Crores) 1998 WAS 2008 IS Share Capital 845 Reserves & Surplus 2568 12159 Loans 1478 1265 Gross Block 5183 16958 Turnover 5397 18008 Gross Margin 1706 4506 PBT 1390 3855 PAT 1020 2601

GAIL ¦ Business Overview Business Portfolio Core Business NG Trans Cap ~ 150 MMSCMD (7000 KM) LPG Trans Cap ~3.8 MMTPA (1927 KM) Transmission Gas Marketing No. 1 company in terms of Market Share Trading Significant Player Only Polymer Plant in North India Production Cap 410000 TPA Petrochemicals 7 Plant across India Significant Player Production Cap ~ 1.3 MMTPA LHC

GAIL ¦ Business Overview Business Portfolio Securing Gas Supply 24 Domestic 3 Overseas (2-Myanmar & 1 Oman) 3 CBM (2Chatisgarh, 1Jharkhand) E&P Leveraging OFC Countrywide Presence Carriers Carrier Service Provider 13000 KM – OFC Network GAILTel High Growth Area 8 JVs (IGL, BGL, MGL, CUGL, GGL, TNGCL, MNGL, AGL) 230 Cities Planned Retail PLL LNG terminal (6.5 MMTPA) RGPPL – Power (2184 MW) & LNG (2.5 MMTPA) GSEG – Power (156 MW) Diversification Onboard Gasification

GAIL ¦ Wealth Creation Creating Value : More than 5 times since 2003 Grown more than 5 times

GAIL ¦ Segmental Physical Highlights – FY08 Significant Growth in Core Segments Gas Transmission MMSCMD 6% Gas Trading 2% LPG Transmission ‘000 MT 11% Petrochemicals ‘000 MT 13% Liquid HC (1%) GAILTel MBPS 57%

GAIL ¦ Financial Performance – FY08 Top to Bottom Growth (Rs in Crores) Sales (Net of ED) 12% Gross Margin (EBITDA) 27% PBT 35% PAT 9%

GAIL ¦ Financial Performance – FY08 Bottom Growth Excluding Abnormal Item (Rs in Crores) 9% 25% Excluding abnormal items PAT grew by 25%

Completed on – Phase I : July 07 Completion sch – Phase I : May 08 GAIL ¦ Pipeline Projects – Recently Completed Pipeline Projects – Strengthened the Core Business Vijaipur-Kota LNTH – 192 Kms. Cost – Rs. 141 Cr. Cap. – 3.5MMSCMD Completed on – Jan 07 Kelaras-Malanpur LNTH – 85 Kms. Cost – Rs. 60 Cr. Cap. – 2MMSCMD Completed on – July 06 Jagoti-Pitampur LNTH – 180 Kms. Cost – Rs. 95 Cr. Cap. – 3MMSCMD Completed on – March 07 THULENDI KELARAS KOTA MALANPUR PHOOLPUR JAGOTI VIJAYPUR RAJKOT PITAMPUR DAHEJ Dahej Uran (DUPL) LNTH – 474 Kms. Cost – Rs. 923 Cr. Cap. – 12MMSCMD Completed on – June 07 Thulendi-Phoolpur LNTH – 139 Kms. Cost – Rs. 142 Cr. Cap. – 2.8MMSCMD Completed on. – May 06 URAN DABHOL Dabhol Panvel (DPPL) LNTH – 327 Kms. Cost – Rs. 402 Cr. Cap. – 12.5MMSCMD Completed on – Phase I : July 07 Completion sch – Phase I : May 08 Pipeline Project

GAIL ¦ Segmental Financial Highlights Growth in each Segment (Rs in Crores) Gas Transmission 11% contributor in Sale 40% contributor in GM Challenge - Incremental Gas volumes No. 1 by Mkt share 57% contributor in Sale 4% contributor in GM Challenge – Sourcing Gas Trading Only company in this segment 2% contributor in Sale 7% contributor in GM LPG Transmission 4% 8% 12% (Net of ED) Sales 2% 14% 15% Margin (GM) Gross

GAIL ¦ Segmental Financial Highlights Growth in core Segments (Rs in Crores) 14% contributor in Sale 31% contributor in GM Challenge – Sourcing of Rich gas Petrochemicals 15% contributor in Sale 22% contributor in GM Challenge – Subsidy Liquid HC Inline with Corporate Strategy <1% contributor in Sale Higher E&P Activities GAILTel & Others 18% 33% 75% (Net of ED) Sales 28% 422% Margin (GM) Gross

GAIL ¦ Breakup of Turnover Balanced Mix of Business Segment Turnover Turnover (FY 07-08) – Rs.18008 Cr * % share excluding unallocated segment

GAIL ¦ Breakup of Gross Margin Business Mix – Significant Gross Margin from Core Business Actives Gross Margin (FY 07-08) – Rs.4506 Cr * % share excluding unallocated segment

GAIL ¦ Key Financial Ratios Ratios Depicts Consistent Performer PAT TO NET WORTH(%) ROCE (%) DEBT EQUITY RATIO EPS (Rs/Share) MARKET CAP (Rs in Crore)

GAIL ¦ Financial Performance - Q4 Sustained Quarter on Quarter Performance Growth in Q4 of FY 2007-08 over Q4 of FY 2006-07 Financial Parameters (Rs. in Crs.) 4935 1260 1098 722 Turnover (Net of ED) 27% Gross Margin (EBITDA) 76% PBT 101% PAT 6% 3883 716 546 681 LPG Subsidy - Rs.387 Crs (Rs.502 Crs. Q4 of FY 06-07)

CHAINSA-JHAJJHAR-HISSAR KOCHI-MANGALORE-BANGALORE GAIL ¦ Upcoming Pipelines Pipeline Projects – Strengthen the Core Business CHAINSA-JHAJJHAR-HISSAR LNTH – 450 Kms. # Cost – Rs. 1000 Cr. Add. Cap. – 35MMSCMD DADRI-BAWANA-NANGAL LNTH – 640 Kms. # Cost – Rs. 2500 Cr. Add. Cap. – 31MMSCMD Phases NANGAL Phase I by 2011 BAWANA DADRI HISSAR Phase II from 2012 JHAJJAR CHAINSA BAREILLY AURAIYA JAGDISHPUR MALANPUR KOTA DAHEJ-VIJAIPUR / GREP Upgradation LNTH – 1115 Kms. Cost – Rs. 11000 Cr. Add. Cap. – 66MMSCMD GAYA VIJAYPUR RAJKOT JAGDISHPUR-HALDIA LNTH – 1690 Kms. # Cost – Rs. 6600 Cr. Add. Cap. – 32MMSCMD HALDIA DAHEJ DABHOL KOLHAPUR GADAG DABHOL-BANGALORE LNTH – 1480 Kms. # Cost – Rs. 4000 Cr. Add. Cap. – 16MMSCMD GOA KOCHI-MANGALORE-BANGALORE LNTH – 840 Kms. Cost – Rs.3500 Cr. Add. Cap. – 16MMSCMD BANGLORE MANGLORE KANJIKKOD KOCHI # Including Spur lines

GAIL ¦ E&P Initiatives E&P Activities – To Secure Future Gas Supplies Total Blocks - 30 Onshore Blocks - 9 Offshore Blocks - Deep Water 13 & Shallow - 5 CBM Blocks - 3 Major Operators - ONGC, GSPC, OIL, Gazprom, Daweoo, Pertogas, Hardy, ENI, Jubilent, Arrow Energy Net investment - Rs.1152 Cr (upto 31.03.08) Discoveries made in 5 Blocks - Cambay onland, A1 & A3 block – Myanmar, Cauvery offshore, Mahanandi offshore Commercial Crude Oil Sales – started from 1st February 2008

GAIL ¦ International Rating GAIL has been given Corporate Issuer Rating by Moody’s Foreign currency – Baa2 (One notch above sovereign rating of Baa3) Local Currency - A3 (Five notch above sovereign rating of Ba2) Positive impact on debt raising capability

Conclusion Wrapping up with confidence Strong Financials Strong GoI Support Relatively New Asset Strong Gas Demand Dominant Position - Transmission Large Capex Plans in Place

THANK YOU

GAIL ¦ Overview State of Art ‘Gas & Beyond’ Infrastructure GAS PIPELINES 7000 KMS (150 MMSCMD) 11 States LPG PIPELINES 1922 KMS (3.8 MMTPA) NATURAL GAS PIPELINE GANDHAR VAGHODIA USAR VIJAIPUR LAKWA TRIPURA KG BASIN VSPL CAUVERY BASIN HVJ, DVPL JLPL RAJASTHAN LPG PIPELINE LPG PLANT PATA PETROCHEM PLANT GAS PROCESSING 7 Plants (1.3 MMTPA LPG) PETROCHEMICALS 410,000 TPA

GAIL ¦ Overview State of Art ‘Gas & Beyond’ Infrastructure OFC Connectivity 13,000 KMS E&P 30 blocks (incl. 3 CBM Blocks) R-LNG PLL- Dahej (6.5 MTPA) Gas Retailing (8 JV) IGL,MGL,BGL,CUGL,GGL, MNGL,TNGCL,AGL Power 156 MW GSEG, Hazira 2184 MW Ratnagiri (Dhabol) Globalization Subsidiary 100% subsidiary – GAIL Global Retail Gas Fayum Gas, Shell CNG, China Gas & NAT Gas CITYGAS OFC CONNECTIVITY E&P BLOCKS INDIA DAHEJ LNG TERMINAL MYANMAR BLOCK

GAIL ¦ Strategic Direction GDP Growth underlies Energy Growth Russia $1.72T Canada US $13T $1.16T China $10T Mexico Japan $1.17T $4.17T India Brazil $4.16T $1.70T 2006 GDP

GAIL ¦ Strategic Direction GDP Growth underlies Energy Growth - India on Growth high Path 4.32% 1.77% $4.95T $1.8T 2.2% Russia $22.4T $1.72T Canada US $13T $1.16T 5.65% $39.5T 3.08% 0.30% $2.5T $4.5T 5.31% China 2.8% $10T $15.6T Mexico $3.4T Japan $1.17T $4.17T India 2030 GDP Brazil $4.16T $1.70T 2006 GDP

GAIL ¦ Strategic Direction Asia is the Fastest Growing Region World Total Primary Energy Consumption Central & South America Quadrillion Btu Africa Middle East Asia Europe North America

GAIL ¦ Strategic Direction China & India is the Fastest Energy Consuming Region World Total Primary Energy Consumption Asia’s Total Primary Energy Consumption Quadrillion Btu Other Asian India China South Korea Japan

GAIL ¦ Strategic Direction Coal & Gas dominates India’s Total Primary Energy Consumption World Total Primary Energy Consumption Asia’s Total Primary Energy Consumption India’s Primary Energy Consumption Quadrillion Btu Other Nuke Gas Coal Liquid

GAIL ¦ Strategic Direction – Vision & Mission Business Statement inline with Energy Dynamics of Indian Economy VISION Be the leading company in natural gas and beyond with global focus, committed to customer care, value creation for all stakeholders and environment responsibility MISSION To accelerate and optimise the effective and economic use of Natural Gas and its fractions to the benefit of the national economy

Trans National Pipeline International Opportunity GAIL ¦ Strategy Implementation Strategy inline with Business Statement UPSTREAM TRANSMISSION MID STREAM RETAIL & DIVERSIFACTION Telecom City Gas Power E & P LNG Import Trans National Pipeline Marketing & Transmission Gas processing Petrochemical Cross Country Pipelines Secure Gas From Domestic Producers Diversification 3 Move Upstream 2 Core Business 1 International Opportunity 4

Industry Attractiveness GAIL ¦ Strategy Implementation Strategy inline with Business Strength & Industry Attractiveness Unattractive Average Attractive Strong Weak Business Strength Industry Attractiveness E&P, Power NG Trading, NG Transmission Retail & Petchem Selective Investment Subsidy Liquid Hydrocarbon Marginal Investment Priority Investment Telecom Wait & Watch

GAIL ¦ Strategy Implementation Synergy in Thinking and Acting Turk-Afg-Pak-India Pipeline NANGAL BHATINDA Iran-Pak-India Pipeline DELHI BAREILLY GURGAUN AURAIYA MATHANIA AGRA LUCKNOW DISPUR DAHEJ I & II 10 mmtpa* JAGDISHPUR BARMER KANPUR GWALIOR PATNA PHOOLPUR KOTA JHANSI VARANASI GAYA AGARTALA UJJAIN VIJAYPUR RAJKOT BOKARO BHOPAL AHMEDABAD DAMRA LNG HAZIRA 2.5 mmtpa KOLKATA PUNE BHARUCH CUTTACK BARODA Existing SURAT BHUBANESHWAR Upcoming MUMBAI KRISHNAPATNAM Transmission Pipelines DABHOL 5 mmtpa SOLAPUR RAJAMUNDRY KAKINADA KOLHAPUR HYDERABAD Existing VIJAYAWADA GOA GAIL’s Planned Pipeline RIL’s East West Pipeline RIL’s Planned Pipeline GSPC’s Planned Pipeline NELLORE HASAN BANGLORE CHENNAI TUTICORIN TIRUCHCHIRAPALLI MANGALORE 2.5 mmtpa MANGLORE City Gas/ CNG Existing KANJIKKOD COIMBTORE Planned KOCHI 5 mmtpa LNG Terminal

Funded Through a Mix of Internal Resources and Borrowings GAIL ¦ Strategy Implementation Segment wise Investments – Balanced Approach Capex in 2007-08: Rs. 1,349 Cr Rs in Cr Funded Through a Mix of Internal Resources and Borrowings

Funded Through a Mix of Internal Resources and Borrowings GAIL ¦ Strategy Implementation Segment wise Investments – Balanced Approach Total Capex in 5 years: Rs. 28,835 Cr Rs in Cr Funded Through a Mix of Internal Resources and Borrowings

GAIL ¦ Strategy Implementation Recent Accomplishments MoU with RIL – International Petrochemical Plant GTA signed with RIL 100% PMT Gas supply through GAIL’s infrastructure MoU with HPCL, Mittal, TOTAL and OIL for integrated refinery project in Vizag Feedstock Supply Agreements for Assam Gas Cracker Project signed - GAIL assures full support to the project GAIL, ONGC sign MoU for formation of JV for monetizing the gas reserves discovered by ONGC in KG and Mahanadi basins GAIL signs MoU with Transparency International India for Integrity Pact with Contractors Petroleum Secretary compliments GAIL on Dahej – Dabhol pipeline completion GAIL, Apollo Tyres sign accord for Steam Conversion Project through Waste Heat Recovery GAIL bags National Award for Excellence in Cost Management GAIL and China Gas to form Joint Venture Company GAIL-HPCL sign JV agreement for city gas projects in Rajasthan GAIL and Indian Oil ink MoU for JV in City Gas Distribution projects in West Bengal

Segment Turnover Particulars Q4 2006-07 2007-08 % Change over 2006-07 (Rs in Crores) Particulars Q4 2006-07 2007-08 % Change over 2006-07 Transmission Services a) Natural Gas 411 498 21 b) LPG Transmission 91 107 18 Gas Trading 2339 2769 Petrochemicals 633 741 17 LPG & OLHC 400 791 98 GAILTEL, CNG and E&P 9 29 222 Sales Turnover (net of ED) 3883 4935 27

Segment Gross Margin (EBITDA) (Rs in Crores) Particulars Q4 2006-07 2007-08 % Change over 2006-07 Transmission Services a) Natural Gas 344 439 28 b) LPG Transmission 66 86 30 Gas Trading 36 72 100 Petrochemicals 337 404 20 LPG & OLHC (51) 379 843 GAILTEL 3 - Unallocated (19) (123) Gross Margin (EBITDA) 716 1260 76

Segment PBT Particulars Q4 2006-07 2007-08 % Change over 2006-07 (Rs in Crores) Particulars Q4 2006-07 2007-08 % Change over 2006-07 Transmission Services a) Natural Gas 264 368 39 b) LPG Transmission 42 64 52 Gas Trading 36 72 100 Petrochemicals 300 366 22 LPG &OLHC (75) 354 572 GAILTEL 1 0.17 (69) Unallocated (22) (126) Profit before Tax (PBT) 546 1098 101

Shareholding Pattern as on 31.03.08 Shareholders >1% or more GAIL ¦ Overview Shareholding Pattern - Strong Support from GoI Shareholding Pattern as on 31.03.08 Shareholders >1% or more President of India 57.34% Life Insurance Corporation 5.94% ONGC 4.83% IOC 2.42% Templeton Global Advisers 1.55% Magellan 1.20% Government of India (“GoI”) is GAIL’s majority shareholder The administrative ministry is the Ministry of Petroleum & Natural Gas, GoI GoI has no plans to reduce its shareholding in GAIL