Govt finds errors in oil and gas regulator Bill

There is a mistake in clause 46 of chapter IX on offences and punishment.

The government has come out with a major errata in the Petroleum and Natural Gas Regulatory Board (PNGRB) Bill introduced in Rajya Sabha on Wednesday.

Among the mistakes which the errata (circulated the same day) points out is one relating to punishment for unauthorised activities where the earlier version mentioned both "registration and authorisation", though it now mentions only registration.

Through the Bill, the government plans to change the norms for grant of marketing rights by substituting the present practice of authorisation with a mere registration.

Companies which meet the criteria set by the government for entering the marketing business may need to only register themselves with the government. Similar registration procedure would also be put in place for establishment of regasification terminals for liquefied natural gas.

The mistake is in clause 46 of chapter IX on offences and punishment. The Bill initially tabled stated: "If any person, being an entity, markets any notified petroleum, petroleum products or natural gas without a valid registration or authorisation as the case may be, such person shall be punishable with imprisonment which may extend to three years or with fine which may extend to Rs 25 crore or both...."

Another important mistake is in the first chapter relating to definitions where transportation rate is explained as being fixed by "an authorised entity" in accordance with regulations. The change says, "as may be fixed by regulations" in which case the regulations could be laid down by either the regulator or the government.

Senior officials told Business Standard the mistakes crept in at the time of final drafting by the law ministry which later prepared the errata, though there were counter-claims that the copy prepared for the Cabinet's approval also carried the mistakes.

The Bill in its final form also left some grey areas which are likely to be clarified on in the final rules to be issued once it has been granted presidential approval.

Among that is the provision relating to restrictive trade practices and transport charges for which oil and natural gas companies will continue to be covered by the Monopolies and Restrictive Trade Practices Commission/Competition Commission of India. "It is not clear whether in case of a dispute it will be the PNGRB or MRTPC/CCI which will have the final say," said an official.

---

GAPING HOLES

There is a mistake in clause 46 of chapter IX on offences and punishment

Another mistake is that transportation rate is explained as being fixed by 'an authorised entity' in accordance with regulations

Officials said the mistakes crept in at the time of final drafting by the law ministry

The Bill in its final form also left some grey areas