GAIL encourages its suppliers, contractors and vendors to uphold environmental, social and ethical standards as part of its sustainable procurement approach. Every supplier must comply with GAIL's General Conditions of Contracts (GCC), which set out commitments on environmental protection, human rights, labour welfare, workplace safety, and ethical conduct.
The Company gives strong preference to local sourcing, in support of the Government of India's Atmanirbhar Bharat initiative, by encouraging greater participation from domestic suppliers and Micro & Small Enterprises (MSEs). Around 90% of the goods and services GAIL procures are sourced locally, reinforcing domestic manufacturing capacity and contributing to inclusive economic growth.

GAIL applies a systematic screening and assessment process to identify potential ESG-related risks across its supply chain, with evaluations accounting for country-, sector-, and commodity-specific risk factors, and sustainability criteria built into procurement and contract management.
To deepen ESG integration, GAIL runs awareness programmes and capacity-building initiatives for suppliers, covering environmental stewardship, social responsibility, regulatory compliance, and ethical business conduct. During FY 2025-26, GAIL's supplier assessment process did not identify any suppliers with significant actual or potential negative environmental impacts.

GAIL regularly engages with suppliers through vendor development programmes, pre-tender meetings, pre-bid meetings and training sessions to enhance awareness, improve contract execution and strengthen sustainability performance.
During FY 2025-26:

• 20 Vendor Development Programmes were conducted across various work centres.
• 04 dedicated programmes focused on SC/ST and women entrepreneurs.
• ESG awareness and sustainability programmes were conducted to improve supplier understanding of environmental, social and governance requirements.
• Collaboration with organizations such as GeM, TReDS, NSIC and National SC/ST Hub supported supplier capacity building and ease of doing business.

GAIL actively promotes procurement from Micro & Small Enterprises (MSEs) through purchase preference policies and targeted supplier development initiatives.
Key Highlights FY 2025-26:

• Procurement from MSEs: INR 1,691 Crore
• MSE procurement accounted for 58.57% of total eligible procurement (INR 2,887 Crore), significantly exceeding the Government target of 25%.
• Procurement from SC/ST-owned MSEs: INR 117.30 Crore (4.06%).
• Procurement from Women-owned MSEs: INR 181.95 Crore (6.3%).

GAIL also implements preferential procurement policies, tender relaxations for start-ups and dedicated initiatives to encourage participation of women and SC/ST entrepreneurs in its supply chain ecosystem.

GAIL continues to strengthen procurement transparency and operational efficiency through digital platforms and paperless processes. Procurement activities are carried out through e-tendering systems, the Government e-Marketplace (GeM) and digital contract management platforms.
To improve supplier experience and payment efficiency, GAIL has implemented:

• Vendor Invoice Management (VIM) System.
• SPARSH Vendor Portal for digital invoice submission.
• ASK-ASHA chatbot for vendor query resolution.
• SARATHI Shared Service Centre for accounts payable management.
• Vendor Helpdesk for prompt issue resolution.

These initiatives enhance transparency, reduce processing timelines and support ease of doing business for suppliers.

GAIL maintains robust grievance redressal mechanisms to ensure transparent and fair engagement with suppliers. Dedicated platforms such as the SAMADHAN Vendor Grievance Portal, Online Complaint System and Vendor Feedback Portal enable suppliers to raise concerns and provide feedback.
Independent External Monitors (IEMs) oversee the implementation of Integrity Pacts in procurement activities, reinforcing transparency, accountability and ethical business conduct across the supply chain.

The governance of supply chain management is supported through various committees, including the Empowered Contracts & Procurement Committee (ECPC), Project Committee, Stakeholder Relationship Committee and Independent External Monitors. These mechanisms ensure compliance, risk management, stakeholder engagement and continuous improvement in procurement practices.
By combining sustainable procurement, supplier development, digital transformation and inclusive sourcing, GAIL continues to strengthen a responsible, resilient and future-ready supply chain that creates long-term value for all stakeholders.
For more details on our procurement policies and supplier engagement programs, visit our Vendor Engagement Portal.

Please Refer Sustainability Report 2025-26 for more information: