News Release Details
Just anyone can't lay-gas pipeline
New Delhi 17-Aug-2007
Companies undertaking city gas distribution projects in various states without the Centre's, approval are in for trouble. The government is considering amending the existing Petroleum for Natural Gas Regulatory Board (PNGRB) Act 2006, which would declare such pipelines illegal from retrospective effect. The petroleum ministry has noticed that certain companies rushed to the pipeline business without the Centre's approval to take advantage of Section 16 of the PNGRB Act. Some of them have laid even a part of the city gas distribution (CGD) network as the Act (Section 16) provides for "deemed authorization" if the project was started before the establishment of the Board. "There are a number of entities which have not been authorized by the Central government, but which have nevertheless laid (the pipeline) and are operating city gas distribution networks. This includes Adani Energy Ltd in Lucknow and also other entities in Gujarat," an official source said. According to an official, they wrongly presume that building any gas pipeline of CGD network before the establishment of the Board shall be deemed to have authorization for such an activity under the Act. According to an official source, the provisions of the Section 16 should be read in conjunction with the provisions under Section 17, which states that only entities authorised by the central government at any time before the establishment of the Board shall furnish the particulars of such activities to the Board within six months from its establishment. While the policy for development of natural gas pipelines and city or local natural gas distribution networks was announced on December 20, 2006, the PNGRB Board started functioning from July this year. It is likely that such companies, which do not have authorisation from the Centre for setting up CGD network, would be required to make applications before the Board for authorisation. It would be up to the Board to accept or reject their applications. Meanwhile, the government is also planning to amend the Act, specifying that central government's authorisation would be a must for laying a gas pipeline or CGD network during the period when the Board was not appointed.
New Delhi 17-Aug-2007
Companies undertaking city gas distribution projects in various states without the Centre's, approval are in for trouble. The government is considering amending the existing Petroleum for Natural Gas Regulatory Board (PNGRB) Act 2006, which would declare such pipelines illegal from retrospective effect. The petroleum ministry has noticed that certain companies rushed to the pipeline business without the Centre's approval to take advantage of Section 16 of the PNGRB Act. Some of them have laid even a part of the city gas distribution (CGD) network as the Act (Section 16) provides for "deemed authorization" if the project was started before the establishment of the Board. "There are a number of entities which have not been authorized by the Central government, but which have nevertheless laid (the pipeline) and are operating city gas distribution networks. This includes Adani Energy Ltd in Lucknow and also other entities in Gujarat," an official source said. According to an official, they wrongly presume that building any gas pipeline of CGD network before the establishment of the Board shall be deemed to have authorization for such an activity under the Act. According to an official source, the provisions of the Section 16 should be read in conjunction with the provisions under Section 17, which states that only entities authorised by the central government at any time before the establishment of the Board shall furnish the particulars of such activities to the Board within six months from its establishment. While the policy for development of natural gas pipelines and city or local natural gas distribution networks was announced on December 20, 2006, the PNGRB Board started functioning from July this year. It is likely that such companies, which do not have authorisation from the Centre for setting up CGD network, would be required to make applications before the Board for authorisation. It would be up to the Board to accept or reject their applications. Meanwhile, the government is also planning to amend the Act, specifying that central government's authorisation would be a must for laying a gas pipeline or CGD network during the period when the Board was not appointed.