New Delhi : The Petroleum Ministry has overruled oil regulator Petroleum and Natural Gas Regulatory Body (PNGRB) over legality of CNG projects in the national capital, saying the regulator cannot de-recognise such operations merely because such operations started before it was formed and did not have authorisation in a particular format.
The Ministry in a letter dated 15 May overruled Petroleum and Natural Gas Regulatory Board’s de-recognisation of Indraprastha Gas Ltd, saying IGL was Government’s authorised entity for city gas projects in Delhi, NOIDA, Gurgaon and Faridabad.
PNGRB had asked IGL, the company owned by state-run GAIL and BPCL and Delhi Government that retail CNG to automobiles and piped natural gas to households in national capital region, to stop all incremental activities as it felt IGL did not have “proper authorisation.”
The P&NGRB Act of 2006, the ministry wrote to PNGRB, “does not prescribe, definitely not retrospectively, any particular manner for the Government to grant authorisation to an entity.”
“The Act does not prescribe any particular manner in which the Government should have granted authorisation to any entity before the appointed day (when PNGRB came into existence),” the letter said.
The Ministry said IGL had Central Government authorisation and does not need to apply to PNGRB for fresh authorisation.
“IGL is free to undertake new or incremental activities to spread the CNG/PNG network to greater number of customers in Delhi and its mentioned suburbs, without need of a fresh authorisation from the Board in this regard,” it said.