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| Gail questions rejection of bid for CNG retailing in Mathura |
| Press Trust of India / New Delhi May 19, 2009, 13:37 IST |
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State-run GAIL India, which was denied licence to retail CNG to automobiles and piped cooking gas to households in Mathura, has questioned the rationale behind the oil regulator PNGRB giving the licence for the city to a firm that has no employee or business.
At the energy tribunal APTEL, Additional Solicitor General Parag Tripathi appearing for Gail Gas — a unit of GAIL, submitted that the Petroleum and Natural Gas Regulatory Board (PNGRB) had denied the state-run firm the right to revise its bid after the regulator extended the bid date.
After the denial, PNGRB awarded the Mathura licence to little-known DSM Infratech.
"DSM Infrastructure has no business, no employee. Their only asset and business is the prospective licence given to them by PNGRB," submitted ASG before the energy tribunal.
Moreover, he also submitted that the PNGRB has not acted in public interest, while declining GAIL to revise its bid on the date when the bidding process was closed.
"GAIL was a single bidder...And as per the terms and condition of the contract a sole bidder could modify its bid, subject to it (bid) could not go below the quoted amount."
ASG also submitted that PNGRB as being a regulator should ensure a fair competition in the sector and should also ensure the interest of the consumers and the operators.
"If Gail is entitled by law to modify then it could not be shown door on the last day of the bid. By this PNGRB is basically taking GAIL's valuable rights away," the ASG submitted.ASG further submitted that it was entitled to withdraw its bid and to submit a better offer.
In the wake of submission made by the PSU, the Appellate Tribunal for Electricity (APTEL) has directed the board to file its affidavit in this regard.
Requesting the tribunal to stay the process, GAIL had earlier submitted it was a sole bidder, but later PNGRB extended dates and during that period DSM Infratech submitted its bid. After that it requested the board to revise its bid, which was not allowed.
In its petition, PSU has also challenged the letter written by PNGRB's secretary informing that it could provide chance to revise the bids.
Refuting the allegations made by GAIL Gas, PNGRB had said that there was only one party in the bid, so it was forced to extend bidding time. Its counsel further submitted that their hands were tied as per laws, they could not allow any party to revise its bid.
"Moreover, we have not modified or altered any condition of the bid, so there is no question of stay...We even did not rejected GAIL's application. Bids were opened and the PSU was not there," submitted PNGRB's counsel.
"GAIL has already got licences for two places and now it wants to have all the licences," she submitted.
The tribunal has listed the matter on May 21 for next hearing.
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