Lift stay on issuing CNG licences: Oil regulator to SC

Oil regulator the Petroleum and Natural Gas Regulatory Board (PNGRB) today requested the Supreme Court to vacate the stay on it from granting licences to companies for sale of CNG to automobiles in cities and assured that all of its member would take any decision collectively.

A battery of counsels representing the PNGRB informed the apex court that the central government has notified the section 16 of the PNGRB Act, which gives it powers to authorise city gas distribution (CGD) projects.

The apex court had on March 15 last year passed an interim order, which allows PNGRB to only process pending applications for CGD, but not pass any final orders.

Prior to this, the Delhi High Court on January 21, 2010 had struck down the powers of PNGRB to CGD. The order is challenged by the board before the apex court.

Solicitor General Gopal Subramanium appearing for the government today informed the apex court that the government has notified the crucial sections of the PNGRB Act and now it should be allowed to function fully.

Senior advocates Rajiv Dhavan and Dushyant Dave appearing for PNGRB assured the court that pursuant to the directions of the high court, the board would take any decision unanimously.

It was alleged that the board was not functioning as one unit and Chairman had cornered all decision making powers, a move that had led to severe disenchantment among certain members of the regulatory body.

"Now a multi-member board would pass the order. There would be no difficulty this aspect... We would act as multi- member," they submitted.

However, the bench comprising justices Dalveer Bhandari and Deepak Verma said that it would pass order only after hearing all the parties.

Meanwhile, Prashant Bhushan, counsel appearing for an NGO Voice of India, opposed it and said that the government despite its assurances, has failed to take any action against one of its member BS Negi over conflict of interests.

"The government had told the court that it would take action against the member very soon and then eight weeks time was granted. However, one year has passed and there is nothing on the record," said Bhushan.

Later, the bench adjourned the matter to Thursday. It also assured some of the parties who were given licence prior to January 21, 2010, before the high court struck PNGRB's power that it would hear them all.

The apex court was hearing an application filed by PNGRB plea to modify its order passed in March, restraining it from granting CGD.