Gas firms seek price deregulation as city distribution targets fall behind

Regulator warns them of losing bank guarantees as investors show little interest in gas economy

Irked by the slow rollout of city gas distribution (CGD) networks in India, the Petroleum and Natural Gas Board (PNGRB) has told companies to get going or risk having their bank guarantees seized. In turn, the companies have told the regulator they are wary of committing investments without the government saying the time period in which natural gas will be offered a free play in the economy, sources said.

Oil and gas companies have made bank guarantees worth Rs 35,000 crore, and PNGRB has not said whose money could be seized but slow pace is rife. (See table at the bottom)

PNGRB