Offer for Sale by the President of India
Acting through and represented by the Director, Ministry of the Petroleum and Natural Gas, Government of India
(the "Selling Shareholder") of equity shares in

GAIL (India) Limited

Offer for Sale by the Selling Shareholder of 84,565,160 Equity Shares of Rs. 10 each of GAIL (India) Limited (the "Company" or "GAIL") at a price of Rs.195 for cash aggregating to approximately Rs.16.3 billion (hereinafter referred to as the "Offer"). The Offer would constitute 10% of the fully diluted post-offer paid-up capital of the Company. The Equity Shares offered for sale are listed on The National Stock Exchange of India Limited (Designated Stock Exchange), The Stock Exchange, Mumbai and The Delhi Stock Exchange Association Ltd. The Equity Shares being offered pursuant to this offer are already listed. As advised by the Securities and Exchange Board of India ("SEBI"), the SEBI guidelines for the public issues/offers do not apply to a listed company facilitating one of the shareholders to dispose off it's shareholding through an offer for sale such as this offer. However, the Selling Shareholder has voluntarily decided to adopt the SEBI Guidelines particularly the guidelines for the 100% Book Building Process, save for specified deviations (See "Deviation from SEBI Guidelines", Page 52 of the Final Sale Document). Pursuant to the decision of the Selling Shareholder, upto 5% of the Offer shall be available for allocation on a proportionate basis to the Employees, a maxmimum of 50% of the Net Offer shall be available for allocation on a discretionary basis to Qualified Institutional Buyers, Further, not less than 25% of the Net Offer shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 25% of the Net Offer shall be available for allocation on a proportionate basis to Retail Bidders, subject to valid Bids being received at or above the Offer Price. The Selling Shareholder has decided to transfer the Equity Shares to Retail Bidders at Rs. 185.25 per Equity Share which is at a 5% discount to the price for QIBs and Non-Institutional Bidders. Further the Selling Shareholder, has decided to offer Equity Shares, to the Employees whose Bid Amount is maximum of Rs.50,000, at the same price at which Equity Shares are offered to Retail Bidders. The Selling Shareholder is solely responsible for the decision and the consequences thereof. For further details, see section on "Terms of the Offer" of the Final Sale Document.

Basis of Allocation

The company has received 342,105 valid bids for 567,318,330 equity shares resulting in 6.71 times subscription. The level of subscription should not be taken to be indicative of either the market price of the Equity Share on listing or the business prospects of the Company. The valid demand (considering highest value bid in case of multiple bids) from Institutional, Non Employees, QIBs and Retail Bidder categories is asunder:

Final Demand: A sample of the f inal demand at different bid prices is as under:

* values <0.001%

A) Allocation to Non Institutional Bidders: The Basis of Allocation to the Non Institutional Bidders who have bid for at or above the Offer Price of Rs. 195 per Equity Share, was finalised in consultation with the National Stock Exchange of India Limited, on a proportionate basis after rounding off to the nearest one share. The total number of shares allocated in this category is 21,886,099. A sample of category-wise details of the Basis of Allocation is as under:

B) Allocation to Retail Bidders: The Basis of Allocation to the Retail Bidders who have bid for at or above the Offer Price of Rs. 195 per Equity Share, was finalised in consultation with the National Stock Exchange of India Limited, on a proportionate basis after rounding off to the nearest one share. The total number of shares allocated in this category is 21,886,100. A sample of category-wise details of the Basis of Allocation isas under:

C) Allocation to QIB Bidders: The Basis of Allocation to the OIB Bidders who have bid for at or above the Offer Price of Rs. 195 per Equity Share, was finalised in consultation with the National Stock Exchange of India Limited, on a proportionate basis after rounding off to the nearest one share. The total number of shares allocated in this category is 40,168,451. A sample of category-wise details of the Basis of Allocation is as under:

D) Employees (Retail): Retail Bidders under the Employees category who have bid for at or above the Offer Price of Rs. 195 per Equity Share, was finalised in consultation with the National Stock Exchange of India Limited, on a proportionate basis after rounding off to the nearest one share. The total number of shares allocated in this category is 327,810. A sample of category-wise details of the Basis of Allocation is as under:

E)Employees (Non Institutional Bidders): Non Institutional Bidders under the Employees category who have bid for at or above the Offer Price of Rs. 195 per Equity Share, was finalised in consultation with the National Stock Exchange of India Limited, on a proportionate basis after rounding off to the nearest one share. The total number of shares allocated in this category is 296,700. A sample of category-wise details of the Basis of Allocation is as under:

Date of Completion of despatch of refund orders               : March 25,2004

Date of credit of shares allocated to successful bidders        : March 25,2004

Allocation details have been hosted on the website with the following URL http://www.mcsind.com/

All correspondences with reference to the Offer should be addressed to the Registrars to the Offer quoting full name of the First/Sole applicant, Serial number of the bid-cum-application form, number of shares bid for, name of the Member of the Syndicate and Place where the bid was submitted and payment details at thefollowing address:

MCS Limited, 'Sri Padmavathi Bhavan', Plot No. 93, Road No. 16, M.I.D.C. Area, Andheri (East), Mumbai-400 093.
Tel.: +91-22-2820 1785, Fax: +91-22-2820 1783, E-mail: gail_offer@mcsind.com, Contact Person: Ashok Kambli.

Place : New Delhi
Date  : April 2, 2004