Oil regulator seeks more time to respond on CNG retail licence

Oil regulator PNGRB has sought more time to respond to Petroleum Ministry's move to snatch away its powers to issue CNG retailing licences.
The Ministry had, earlier this month, sought comments by March 20 on its draft guidelines seeking to wrest powers to give CNG retailing licences from sectoral regulator PNGRB.
"A view (on the guidelines) will have to be taken by the full Board. We have told them that we need 7-10 days more to respond," said an official of the Petroleum and Natural Gas Regulatory Board (PNGRB).
The Ministry, on March 5, issued 'Draft Guidelines for Granting Marketing Rights for CNG as Transportation Fuel, including setting up CNG Stations' wherein any entity that has invested Rs 500 crore in oil and gas infrastructure can get rights or licence to retail the fuel to automobiles by setting up CNG stations.

While, the union government had authorised entities like Indraprastha Gas Ltd and Mahanagar Gas Ltd for retailing CNG to automobiles in Delhi and Mumbai, respectively, in early 2000, PNGRB has been doing so through bidding rounds since its establishment in 2006.
The official said, the issue is also subjudice as some entities have challenged the provisions of the PNGRB Act for grant of CNG licenses.

"We have told them politely that the matter is subjudice and lets wait for the outcome," he said.
In the draft guidelines, the ministry stated the companies which invested a minimum of Rs 2,000 crore in oil and gas infrastructure were granted marketing rights for petrol, diesel and ATF through the March 2002 notification, entities investing a minimum of Rs 500 crore will be eligible for marketing rights for CNG.

Also, entities authorised by PNGRB or Central Government would be eligible.
Since 2006, entities apply to PNGRB and not the government for rights to retail CNG alongside selling natural gas as fuel within city limits.
While PNGRB has been issuing the licence to retail CNG as well as piped natural gas (PNG), the ministry guidelines pertain only to rights to sell CNG.
"The entities which have already been granted marketing rights for petrol, diesel and ATF as transportation fuel, under Resolution dated March 8, 2002 will be deemed to have such grants of marketing rights for CNG as transportation fuel," it said.

In 2002, state-owned Oil and Natural Gas Corp (ONGC) besides Reliance Industries, Essar Oil, Royal Dutch Shell and Numaligarh Refineries had won authorisation to set up petrol pumps to sell petrol and diesel.
Besides these firms, fuel retailers Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) as well as gas utility GAIL India Ltd will be eligible for CNG marketing rights.