Centre okayed GAIL JVs, says Deora

Centre okayed GAIL JVs, says Deora

New Delhi: The government on Monday informed the Parliament that GAIL India Ltd’s eight joint ventures for retailing CNG to automobiles and piped gas to industries have been authorized by the Centre and do not need fresh authorization from sector regulator PNGRB.

The joint ventures include Indraprastha Gas Ltd for Delhi, Mahanagar Gas Ltd for Mumbai, Bhagyanagar Gas Ltd for Andhra Pradesh, Central UP Gas Ltd for Kanpur, Green Gas Ltd for Lucknow and Agra, Maharasthra Natural Gas Ltd for Pune and Avantika Gas Ltd for Indore, petroleum minister Murli Deora stated.

In a written reply to a question, he said the JVs were authorized by the Central government before the Petroleum and Natural Gas Regulatory Board (PNGRB) came into being on 1 October 2007 and need no fresh authorization.

“These JVs were authorised by the Central government before the ‘appointed day’ under the PNGRB Act, i.e. October 1, 2007, and ,hence, do not need fresh authorisation from PNGRB," he said.

PNGRB had declared all these companies illegal and only after much persuasion accorded authorization to some of these like IGL and MGL.

The Centre said the city gas projects in Gujarat, most of which started after October 2007, would require authorization from PNGRB.

“As provided in proviso to Section 17(2) of PNGRB Act, 2006, these (eight) JVs (of GAIL) are only required to furnish particulars of their activities to PNGRB within six months of the appointed day,“ Deora said.

The Gujarat government has expanded CNG to almost all towns in the state.

Minister of state for petroleum and natural gas Jitin Prasada listed out the towns including Anand, Bharuch, Ahmedabad, Gandhinagar, Godhra, Halol, Hazira, Kalol, Rajkot, Vapi, Surat, Ankleshwar and Palej.

“The expansion of city gas distribution network in new cities/towns/areas in the country, including in Gujarat, would require authorization by PNGRB under the provisions of PNGRB Act, 2006," he said.

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