The Gujarat High Court Friday dismissed a plea filed by Adani Gas challenging the bidding process for the supply of PNG and CNG in three areas of Ahmedabad district.
In the bidding process, which was carried out by the Petroleum and Natural Gas Regulatory Board (PNGRB) in 2016, Adani Gas lost to state-run Gujarat Gas Limited to supply PNG and CNG in Sanand, Bavla and Dholka areas of the district.
In June 2016, Adani Gas approached the Gujarat High Court over this loss. A bench of Chief Justice R Subhash Reddy and Justice V M Pancholi Friday dismissed Adani Gas's objection plea against the bidding process.
Before the PNGRB Act came into force in 2006, the Gujarat government gave Adani Gas permission to supply gas in Ahmedabad district with a condition that the permission was subject to any act that came into force in the future.
As per regulation 18 of the PNGRB Act, a company needs to take PNGRB's authorisation to carry out work in an area for which the firm does not have permission from the Central government.
In 2013, as per Regulation 18 of the PNGRB Act, Adani approached PNGRB seeking permission to build gas supply infrastructure in entire Ahmedabad district.
However, while granting permission, the PNGR Board excluded Sanand, Bavla and Dholka areas of the district.
Later the regulator invited bids for these three areas in 2016, with Gujarat Gas emerging victorious while the Adani firm lost.
Following this loss, Adani Gas approached the Gujarat High Court and challenged the bidding process as well as the PNGR Board's decision to exclude these three areas -- Sanand, Bavla and Dholka while giving permission to it for the rest of the district in 2013.
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