Gas regulator seeks power to grant distribution licences

The Petroleum and Natural Gas Regulatory Board (PNGRB) today moved the Supreme Court seeking modification of an order passed by the court in March, restraining the watchdog from taking any decision on gas distribution licences.

A Bench comprising Justice Dalveer Bhandari and Justice Deepak Verma admitted the application filed by PNGRB, but did not pass any order on the plea.

The court had on March 15, 2010 passed an interim order allowing PNGRB to process applications for grant of licence to city gas distribution companies, but barred them from actually giving out licences.

The court's contention was that section 16 of the PNGRB Act, 2006, had not been notified by the government, hence the board had no powers for grant of final licence.

Requesting the court to modify its order, PNGRB's counsel Harish Salve submitted that the government had notified section 16.

"Notification has been issued by the government and now we have got legal sanction for grant of license," said Salve.

The apex court also asked city gas distributor IGL and one NGO Voice of India to respond.

It was on the plea made by IGL and Voice of India that the Delhi High Court had in January ruled that PNGRB had no powers to issue licences for city gas distribution.

The apex court will hear the matter in the second week of September.