Petroleum and Natural Gas Regulatory Board (PNGRB) is expected to revive the licensing process for city gas distribution (CGD) system.
Since 2009, there was no progress in CGD licensing on account of legal obstacles in the board’s functioning.
According to media reports, the downstream oil and gas regulator may ask bidders for revised documents to prepare letters of intent.
The board has reportedly decided, in principle, to give green signal to successful bidders in the second round of bids to go ahead with laying network in six centres.
These centres include Allahabad, Chandigarh, Rajahmundry. A joint venture between state-run IOC and Adani Gas will be given licence for Allahabad and Chandigarh while Gail-BPCL-promoted Central UP Gas will get Jhansi.
The board may award license to Reliance Gas Corp to lay network in Yanam, Rajahmundry and Shahdol. Indraprastha Gas that approached Delhi High Court against the regulator’s bidding process will continue to operate in Ghaziabad.
The board may ask the successful bidders to issue bonds and submit fresh documents before handing over letters of intent to three players. The board will take call on third round of bidding as soon as it is through with formalities of second round.
Leave a Reply
You must be logged in to post a comment.