Not a toothless tiger

BACKSTAGE

This amicable man can be tough when he needs to be," an official in the oil ministry describes Labayendu Mansingh, chairman of the Petroleum and Natural Gas Regulatory Board.

In his five months as the petroleum and natural gas regulator, Mansingh, former secretary in the department of consumer affairs, announced to the oil and gas industry his intention of proving that the regulatory board is more than the "toothless tiger" it has been made out to be.

"Reports have suggested that the regulatory board is a toothless tiger. We have enough teeth, provided we decide to use them," Mansingh said at a gas conference in New Delhi recently. He was reading out the penalties city gas distribution companies would have to face if regulations are violated.

Mansingh, who retired as secretary of the department of consumer affairs in 2006, was instrumental in getting the Asian Development Bank to extend a loan of $100 million for strengthening the commodity derivatives markets. He was also actively involved in India importing five million tonnes of wheat in 2006 after a gap of six years.

Mansingh was not the expected name for the petroleum regulator's post. Other people with vast experience in the petroleum sector were touted to be take over as the first regulator. "Mansingh's experience of the overseeing the commodity exchanges will be of great use to him," says an official in the petroleum ministry.

The petroleum and natural gas regulatory board is set to come out with its first set of regulations which will lay down the rules for the distribution of gas to households, vehicles and industries in cities by the middle of this month. "We have come out with the rules in record time. This is one of the most important sets of regulations in the sector," says Mansingh. The sector is set to involve investments of "over $39 billion."

Mansingh, a 1970-batch IAS officer from the Gujarat cadre, will follow this up with regulations on cross-country natural gas pipelines. "That could be just a couple of months away," according to a member of the regulatory board.

"He threw himself in his new role as regulator. When he says he wants something done, he goes to all lengths to ensure it is done in the quickest possible time," the regulatory board member said.

Industry officials are often taken aback with the confidence and knowledge of the sector that Mansingh displays. "For a man who is new to the oil and gas sector, this is commendable," says an official with gas utility GAIL (India) Ltd. Mansingh is also heading a regulatory board which has only one member with past experience in the sector.

When Mansingh accepted the offer of heading the petroleum and natural gas regulatory board, he was an unknown commodity. At the time of his appointment only random words "" amiable, articulate, tough, experienced "" were thrown up as a description of the man.

"All of that has changed. He is the sort of man who will even take on the petroleum ministry regarding the pricing of petrol and diesel in order to ensure there is competition in the business," the regulatory board member said.

The regulator's job, industry players say, is still not very well-defined. "From the look of it, the regulator's job appears to be one for pipelines only. Pricing, of gas for instance, is going to be outside his scope," a senior official of an oil company said.

Mansingh is, however, attempting to change all of that. The board is attempting to not only set standards for future regulation in the gas sector, but also make the sector transparent. "That is our primary aim," says Mansingh.