Differences of opinion between the chairman and a member of the Petroleum and Natural Gas Regulatory Board (PNGRB) on whether existing city gas companies would be allowed to expand their operations came out in the open today.
At an industry conference in New Delhi, Chairman Labanyendu Mansingh said cities such as Noida, Faridabad and Gurgaon, for which Delhi-based Indraprastha Gas Ltd (IGL) has already been given permission for setting up gas networks, would be put up for bidding after Reliance Gas, a subsidiary of Reliance Industries, submits an expression of interest for these cities.
However, BS Negi, member (infrastructure), said since the rights for these cities had already been given to IGL, “There was no question of putting them up for bidding.”
This comes at a time when there have been reports of differences between the members of the board and its chairman. Negi had earlier said that the differences related to opinion and were necessary to decision-making.
However, rumours refuse to die down. “It looks like a lot of chaos,” said an official with a city gas company who was present at the conference.
Reliance Gas had earlier sent expression of interest to the board for setting up gas distribution networks in cities such as Noida, Gurgaon and Faridabad around Delhi and Vijaywada and Hyderabad in Andhra Pradesh. IGL has the permission of the petroleum ministry to spread its network to Noida, Gurgaon and Faridabad, while Bhagyanagar Gas is already operating in Vijaywada and Hyderabad.
These companies have opposed the move to put up these cities for bidding.
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“We have been writing to the regulatory board. Now we will apply again,” said IGL Managing Director Rajesh Vedvyas.
Mansingh said two existing companies operating in Gujarat — Gujarat Gas and Sabarmati Gas — had been authorised by the regulator. “IGL and the rest of the existing companies have not applied for authorisation yet,” he said.
Companies such as IGL, Mahanagar Gas and Gujarat Gas have been operating since much before the PNGRB was formally set up on October 1, 2007. City-gas companies operating before the regulator was set up need to get themselves “reauthorised” by the regulator for continuing their operations.